Great Panther Mining (TSX: GPR) last night announced the completion of its previously announced share consolidation. In one of the more embarrassing moves by a public company as of late, the consolidation appears to have been rather ineffective for its original intended goal.
The move to consolidate its common shares was the result of the company falling out of listing requirements with the New York Stock Exchange. That exchange requires a US$1.00 minimum price for securities listed. Thus, a share consolidation could potentially push the firm over the line in terms of meeting this requirement.
Great Panther elected to conduct a ten to one consolidation, reducing its share count to 47.1 million. The problem is, is that its valuation has fallen dramatically enough as of late that the company won’t see its listing regain compliance with the consolidation – instead its expected to be several cents short of the requirement on a per share basis.
It’s unclear if the company intends to conduct another consolidation as a result at this time.
The company indicated in its announcement last night that the company will trade on a post-consolidated basis as of the open of markets on July 25.
The flub follows the company yesterday releasing its second quarter 2022 production data. The quarter saw production fall 27% on a year over year basis, and is expected to be the last full quarter with the firms recently sold Mexican silver operations.
Great Panther last traded at $0.12 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. 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.