SugarBud Craft Growers To Consolidate At 100 To 1 Ratio
Consolidations appear to be on the rise within the Canadian capital markets. SugarBud Craft Growers (TSXV: SUGR), a cannabis firm solely focused on the craft cannabis space, is the latest such firm to announce a share consolidation.
The firm will see its share consolidation take effect on February 18, following the approval from shareholders just last week. The company had initially requested approval for a consolidation at a ratio between one for fifty and one for a hundred from its shareholders, going so far as to seek a recommendation from Institutional Shareholder Services on the move.
The move was sought as a means of providing “greater flexibility for the company with respect to future opportunities, including merger and acquisition activity.” The firm also expects that the reduced share count would provide shareholders with “increased liquidity and [reduced] volatility.”
With approval from shareholders now in hand, the company is wasting no time in conducting the reverse split. The firms board has elected to go to the maximum permitted by the shareholder resolution, reducing its share count by a factor of 100. Current shareholders will receive one share for every 100 pre-consolidation shares held, resulting in just 5.7 million shares remaining outstanding once the consolidation takes effect. Outstanding warrants, options, and other convertible securities will be adjusted at the same ratio.
The company will begin trading on a post-consolidation basis as of Friday.
SugarBud Craft Growers last traded at $0.02 on the TSX Venture.
Information for this briefing was found via Sedar and SugarBud Craft Growers. 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.
