Salona Global published an update on their pending transaction and Q3 financials on Thursday, January 21.
Before we begin, I need to correct a few mistakes from my first Salona Global post. Thank you Chip and Jacob for pointing them out. The whole Valuation and Price section is wrong… shit. Cash After the Transaction should be $16mm, not $24.5mm. Net Assets are now roughly $22mm, not $30mm. There is also an $11mm tax credit from their previous Annual Report, but we’ll leave that aside for now. Luckily, pro forma financials are coming soon and we won’t have to guess as much.
Salona received approval from the TSX Venture exchange Wednesday, January 20th. They will hold a shareholder vote on Tuesday, March 2nd. With Mr.’s Dalsin and Greene owning roughly 1/4 of the company, and poor stock performance of BRTL, I believe shareholders will vote the deal through. But, what are the rules for these types of meetings? How many votes are required for approval? I don’t actually know, and should probably find out.
Meeting materials (management information circular and pro forma financials, among other exciting things) will be released around Tuesday, February 9th.
I’m (perhaps naively) excited about this whole situation. I bought stock as a net-net, figuring Mr. Dalsin and Greene would just do something interesting. A healthcare roll-up with a potential Nasdaq uplisting is interesting, to say the least. Time to stop patting myself on the back, though. I should get back to work.
Disclosure: Long SGMD.V (I can’t sell it! It’s halted).