Craft cannabis company, Grown Rogue International Inc.(CSE:GRIN) (OTC:GRUSF) confirmed Monday it will implement a reorganization of the company's share capital as approved by the company's shareholders at its last annual and special meeting.
"The purpose of the share reorganization is to preserve our foreign private issuer status in the United States and will have no impact on the voting power of any shareholder. Completing the share reorganization will allow us to defer the added reporting obligations and the conversion of our financial reporting standards from IFRS to GAAP," stated Obie Strickler, CEO of Grown Rogue. "Our accounting and finance team have already completed two sets of audited financial statements this year as a result of our change of year-end, and we want our entire team intently focused on our near-term operational and strategic goals, including getting our New Jersey and Illinois assets up and running."
The share reorganization comes following the Oregon-based company's licensing approval with the New Jersey Cannabis Regulatory Commission and closed its first option to acquire 44% of ABCO Garden State, LLC.
Share Reorganization Highlights
Under the share reorganization, the company intends to amend its articles to redesignate its existing class of common shares without par value in the capital of the company as subordinate voting shares and create a new class of unlisted multiple voting shares.
The new CUSIP and ISIN for the SV Shares are 39986R304 and CA39986R3045, respectively. The trading symbol for the SV Shares will remain "GRIN" on the Canadian Securities Exchange. The record date for the share reorganization is June 26, 2024, and the share reorganization will become effective on or about June 27, 2024.
Holders of common shares held in book-entry form or through a bank, broker or other nominee will have their positions automatically adjusted to reflect the share reorganization, subject to a broker's particular processes, and do not need to take any action in connection with the share reorganization. The letter of transmittal contains instructions on how registered shareholders can exchange their common share certificates for new certificates representing the SV Shares to which they are entitled.
Earlier this year, Grown Rogue also announced its debut in Illinois via a partnership with EBC Ventures, establishing Rogue EBC LLC, a joint venture poised to reshape the craft cannabis segment statewide.
Price Action
Grown Rouge closed Monday market session 17.74% higher at 73 cents per share.
Photo: Courtrsy of Anan Kaewkhammul via Shutterstock