Aurora–facing delisting by the NYSE after more than 30 days trading for less than $1– announced its intention to consolidate shares in a board-approved 12-to-1 reverse split scheduled for May 11. The deal will give shareholders one share for every twelve they presently own.
New Cannabis Ventures, The Deep Dive
- The company has more than 1.3B shares outstanding, and this reverse-split will bring that number down to about 110M.
- Shareholders were not thrilled about the announcement.
Hexo announced it raised $46M in an underwritten public offering. It did so by selling shares at $0.77, discounted 20% from the previous day’s closing price of $0.96. The company described the discount as “priced in the context of the market.”
MJ Biz Daily, Ottawa Business Journal, BNN Bloomberg
- Share price declined 30%, below $0.77, as a result of the offering. Still, highly dilutive offerings may be the only means for LPs to raise cash at this precarious moment.
Globe and Mail
- CEO Sébastien St-Louis said Hexo would need to raise $150M in new capital to continue its planned 2020 trajectory.
In Other Corporate News:
Sundial is scaling back its cultivation and harvesting to cut costs during pandemic, while continuing processing and relying on its available inventory. They also temporarily laid off 65% of their workforce (roughly 700 layoffs).
The Deep Dive, Twitter–@itsdgc