Fantino told shareholders in a letter that in order to obtain a NASDAQ listing Aleafia may have to consolidate its shares to meet the minimum share price requirement from the exchange.
“Successfully listing on a major US stock exchange would broaden Aleafia’s shareholder base, and increase appeal to institutional investors,” Fantino wrote.
In the letter, the chairman presented his case by sharing the following points:
- Aleafia will only pursue a share consolidation if it is deemed necessary to meet NASDAQ requirements. This resolution simply allows the flexibility to pursue this option at an advantageous time for Aleafia’s shareholders.
- If a share consolidation is enacted, it will not have an effect on the percentage ownership of each individual shareholder or the company.
- We may not need to pursue a consolidation.
According to Fantino’s letter, the company will only go after a consolidation “if it is absolutely necessary to secure a listing on NASDAQ.” If it is, then Aleafia will “do so at the minimum ratio necessary to reach our objective of the listing.”
The market reacted by slashing the company’s share price by nearly 20 percent.
Shares of the company had declined nearly 19.19 percent at the close of Monday’s trading session, and Aleafia was at C$1.39 after the markets closed.
As Investopedia explains, share consolidations involve reducing the total number of outstanding shares a company has in the open market, usually by dividing its existing total quantity of shares by a number such as five or 10.
Aleafia is a Canadian cannabis company that is licensed as a producer in Ontario. The company is authorized to sell plants and seeds to authorized distributors and retailers.
As part of its Q3 fiscal results, the company posted revenue of C$1.6 million for the three-month period ended on September 30.
Geoffrey Benic, CEO of Aleafia, said the company expects 99 percent of its annual cannabis production capacity to be active in 2019 and said it will begin to move into the adult-use market.
Many dominant Canadian-listed cannabis companies have chosen to list in the US this year.
“This listing provides access to a broader investor audience who gain the opportunity to participate in our continued success,” Aurora Cannabis (NYSE:ACB,TSX:ACB) CEO Terry Booth said in a press release announcing his company’s NYSE listing.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
In the evolving rush of mergers and acquisitions (M&A) in the Canadian cannabis market, Canopy Growth (NASDAQ:CGC,TSX:WEED) announced it will acquire The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) in a deal worth approximately C$435 million.
Meanwhile, a cannabis operator in the US confirmed this week that it will receive a financial boost from a partner to solidify its position in the burgeoning Pennsylvania state market.
The Board of Directors of Aphria Unanimously Recommends Shareholders Vote “For” the Arrangement
Aphria to Host Special Meeting of Shareholders on Wednesday, April 14, 2021 to Approve Proposed Aphria-Tilray Business Combination
Love Hemp Group PLC (AQSE: LIFE) (OTCQB: WRHLF), one of the UK’s leading CBD and Hemp product suppliers, announces that as part of the equity fundraise announced yesterday, Antony Calamita and Andrew Male, Directors of the Company, subscribed for 285,714 Ordinary Shares and 1,428,571 Ordinary Shares respectively. The subscriptions are at a price of 3.5 pence per ordinary share for a total of £60,000. Following these subscriptions, Antony Calamita is now interested in 54,385,714 Ordinary Shares, representing 8.61% of the Company’s share capital as increased by the fundraising, and Andrew Male is now interested in 6,138,196 Ordinary Shares, representing 0.97% of the Company’s issued share capital as increased by the fundraising
Further, the timetable for receipt of applications under the Broker Option, which was also announced yesterday, has been extended until 5:00 pm 9 April 2021 to capture additional interest which was unable to be completed yesterday.
Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, would like to provide the following dial-in information for the Company’s upcoming Annual and Special Meeting (the “Meeting”) scheduled to be held at 11:00 a.m. Eastern Daylight Time on April 12, 2021. Shareholders and proxyholders may access the Meeting via teleconference by dialing 647-723-3984 or 1-866-365-4406 from Canada or the United States, then entering participation code “8487744” followed by the pound (“#”) sign.
In consideration of the COVID-19 pandemic and the recent restrictions imposed by the Ontario Provincial Government, shareholders and proxyholders will only be able to attend the Meeting via teleconference and will not be permitted to attend the Meeting in person at the address provided on the Notice of Annual and Special Meeting of Shareholders.
Gage Cannabis Announces Exclusive Partnership With Blue River to Bring Award-Winning Cannabis Extracts to Michigan
Gage Growth Corp. (“Gage” or the “Company”) (CSE:GAGE), a leading high-quality craft cannabis brand and operator in Michigan, announced today that it has signed an agreement with Blue River™ Extracts & Terpenes (“Blue River™”) to bring the brand’s award-winning solventless technology and other trademark branded products to the state’s medical patients and cannabis consumers. The Company will have exclusive rights to Blue River™’s premium product offerings in Michigan.