Aurora–facing delisting by the NYSE after more than 30 days trading for less than $1– announced its intention to consolidate shares in a board-approved 12-to-1 reverse split scheduled for May 11. The deal will give shareholders one share for every twelve they presently own.
New Cannabis Ventures, The Deep Dive
- The company has more than 1.3B shares outstanding, and this reverse-split will bring that number down to about 110M.
MarketWatch - Shareholders were not thrilled about the announcement.
Benzinga
Hexo announced it raised $46M in an underwritten public offering. It did so by selling shares at $0.77, discounted 20% from the previous day’s closing price of $0.96. The company described the discount as “priced in the context of the market.”
MJ Biz Daily, Ottawa Business Journal, BNN Bloomberg
- Share price declined 30%, below $0.77, as a result of the offering. Still, highly dilutive offerings may be the only means for LPs to raise cash at this precarious moment.
Globe and Mail - CEO Sébastien St-Louis said Hexo would need to raise $150M in new capital to continue its planned 2020 trajectory.
Twitter–@itsdgc
In Other Corporate News:
Organigram posted its fiscal Q2 earnings, showing net revenue declining to $23.2M from $25.2M in Q1, following declines in revenue from MED, wholesale, and international streams.
MJ Biz Daily
Aphria–related Alberta investment firm Green Acre Capital led one of two private placements for REC firm Fire & Flower, which raised a total $25M.
New Cannabis Ventures, MJ Biz Daily
James E. Wagner Cultivation‘s assets are up for sale, against a low (stalking-horse) bid of $11.95M, as part of its restructuring by Trichome Financial.
MJ Biz Daily, Trichome Financial
Sundial is scaling back its cultivation and harvesting to cut costs during pandemic, while continuing processing and relying on its available inventory. They also temporarily laid off 65% of their workforce (roughly 700 layoffs).
The Deep Dive, Twitter–@itsdgc
