Core One Labs (CSE: COOL) early this morning reiterated that it is the latest junior Canadian equity with US big board aspirations. The firm is reportedly pursuing a listing on the Nasdaq on the Capital Market tier, and has performed a a share consolidation as a result.
Interestingly, the firm is utilizing its Nasdaq aspirations as a means of justifying its share consolidation, which was reportedly conducted as a means of meeting minimum listing requirements. The consolidation actually went into effect as of yesterday, with the firms equity consolidating on a eight to one basis. Investors were not provided the ratio prior to it going into effect.
Following the share consolidation, the company has a total of 14.3 million common shares outstanding.
The listing of the company on the Nasdaq remains subject to approval of the exchange. The company has indicated that the listing is being pursued as a means of furthering development of US-based business, to draw in additional institutional dollars to its equity, as well as for possible M&A activity. The firm intends to remain listed on the CSE at the same time, if approved for listing.
The initial application was reportedly filed by the company back on March 20 for the listing of its equity on the exchange. Notably however, the firm has minimum cash reserves to support such a move, with the company having just $1.2 million on the books as of March 31, 2021, while also posting a quarter wherein the firm spent $1.4 million on advertising and promotion despite having no revenues, along with a further $0.7 million on consultants.
Core One Labs last traded at $4.45 on the CSE.
Information for this briefing was found via Sedar and Core One Labs. 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.