In a rarely seen move, a small-cap British Columbia-based cannabis company is ending its time on the Canadian Securities Exchange (CSE) with a voluntary delisting application.
ICC International Cannabis (ICC) (CSE:WRLD.U,OTC Pink:WLDCF) told investors on Wednesday (December 18) that it’s looking to pull its common shares off the exchange after assessing alternatives to preserve its operations and expand its business activities.
“In the course of its review process, the company has determined that certain funding opportunities at valuations that better reflect the underlying asset value of the company are only available should the company become a non-listed reporting issuer,” ICC said in a statement.
ICC’s review into its business also looked into cost-cutting measures in an effort to maintain its capital position.
The firm said it received consent for the delisting from a majority group of minority shareholders from the company. This group excludes company executives with a stake in ICC.
The application is now subject to final approval from the CSE, but before the delisting is signed off, ICC will continue as a reporting issuer on the exchange in certain jurisdictions in Canada.
ICC did not respond to a request from the Investing News Network for further comment.
In a press release, the company said it plans to evaluate alternative liquidity for its shareholders in 2020, including a reverse takeover, a direct listing, an asset or trade sale or entering into a joint venture.
According to the CSE’s delisting policy, an issuer has the right to request any or all of its securities are delisted, but the exchange is free to reject the application if it’s owed outstanding fees or if the request is made so that the company can proceed with a transaction the CSE deems “unacceptable” or “objectionable.” The CSE can also deny the request if it believes it’s in the public interest to do so.
Barrington Miller, director of listed company services at the CSE, told the Investing News Network (INN) that applications are rejected if the delisting could negatively impact the shareholders of the company in question.
Delisting applications are reviewed by a listing committee on a case-by-case basis, Miller said.
“The number of companies to voluntarily delist to go private is few and far between,” he told INN, adding that the small number of firms that do decide to take their shares off of the CSE often do so after obtaining listings on other exchanges.
The firm boasts of cannabis operation assets in Europe, Asia, Africa and South America. ICC holds an investment relationship with Auxly Cannabis Group (TSXV:XLY,OTCQX:CBWTF), which subscribed for C$5 million of senior unsecured convertible debentures of ICC in 2018.
ICC was last active on its Facebook and Twitter accounts in July to announce a cannabinoid pharmaceutical advisory agreement with Dr. Alexandros Makriyannis an advisor, according to the firm, with Pfizer (NYSE:PFE), Bristol-Myers Squibb (NYSE:BMY) and other players in the pharma industry.
Shares of ICC opened at US$0.20 at the market open on Wednesday and dipped to US$0.10 nearing the end of the trading session. Year-to-date, the company has experienced massive losses, plunging 96.2 percent.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
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