Sundial Growers (NASDAQ: SNDL) announced the results of its annual shareholder meeting this morning, reporting that all the proposed directors have been accepted for appointment. More interesting however, is that the shareholders approved a proposed share consolidation for the company.
The share consolidation itself does not have a set ratio, with the text describing a range for consolidation from one share for every three shares of the company held, to one share for every twenty shares of the company held. There is also no set timeline released by Sundial for the consolidation to take effect.
As per the management information circular, the share consolidation was included for approval by shareholders on the anticipation that the company will receive a notice from the Nasdaq exchange as a result of not meeting the $1.00 per share requirement of the exchange. The share consolidation, in effect, would enable the company to maintain its Nasdaq listing, with the secondary justification being to, “enhance the marketability of the Common Shares given that an increase in the price per Common Share could increase the interest of institutional and other investors with policies that prohibit them from purchasing stock below a minimum price.”
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Sundial has indicated that it will not conduct the share consolidation until such time that the board of directors views it as being in the best interest of the company.
Sundial Growers last traded at $0.55 on the Nasdaq.
Information for this briefing was found via Sedar and Sundial 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.
