Belgravia Capital (CSE: BLGV) announced this morning that it is effectively seeking to become a shell in a reverse takeover transaction. The investment firm, whom was previously focusing on a number of sectors including cannabis, has identified that it has failed to generate any shareholder value and thus is looking for alternatives.
The firm has outlined two potential alternatives for the future of the company, which include either finding a candidate for a reverse takeover transaction, or acquiring a wholly owned subsidiary and deploying its capital for the development of the business. Effectively, both situations arrive at the same end result – Belgravia no longer wishes to be an investment vehicle.
The firm itself identified that it currently has a net asset value of approximately $9.6 million, however the true value of those holdings are questionable. In a separate release issued this morning, Belgravia identified that it is attempting to secure certain debts owed from four of its investments, for which it has had little success.
Belgravia did not identify what sector it is seeking to enter through a reverse takeover transaction. Rather, the firm stated that they are “seeking its acquisition and/or RTO candidate with a market capitalization that will compliment and enhance the current valuation of Belgravia and potentially create shareholder value.” The firm views this a potential transaction as better for shareholders verse that of trying to make a return in a capital-tight micro cap climate.
Belgravia Capital last traded at $0.015 on the Canadian Securities Exchange.
Information for this briefing was found via Sedar and Belgravia Capital. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.