Harborside Inc (CSE: HBOR) announced after the closing bell yesterday that it will be commencing a normal course issuer bid, also known as a share buyback, for a portion of the firms currently outstanding subordinate voting shares. Harborside conducted its go public on June 10, and has seen its equity fall considerably in the time since.
Initially going public via a reverse takeover transaction with that of Lineage Grow, Harborside opened to the market on June 10 at a price of $6.00 before falling to $5.15 by the end of day. Subscription receipts for the reverse takeover transaction were issued at $7.00 per share, which consisted of one common share of the firm, as well as a full warrant at a price of $8.75. It has since hit a low of $1.78, as shareholders have seen their investment evaporate.
As a result of this fall, management believes that the equity is heavily undervalued stating that the current equity price represents only a 1.5x multiple on the current years sales figures.
Harborside indicated that it intends to purchase up to 5% of the currently outstanding 18,125,801 subordinate voting shares of the firm. The process of the buyback is expected to begin no earlier than that of September 9, 2019, and will commence for a period of up to one year. Based on the currently outstanding shares, Harborside could purchase up to 906,290 shares, representing a value of $2.59 million based on current equity pricing.
Harborside Inc has $19.34 million cash on hand as of June 30, providing ample room to conduct the proposed share buyback.
Information for this briefing was found via Sedar and Harborside Inc. 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.