Supreme Pharmaceuticals (CSE:SL, Stock Forum), medical marijuana darling, announced today that the company would be pursuing a 5 to 1 share consolidation, noting that in the process fractional shares would be rounded up.
According to the news release, the consolidation would reduce the 290.44 million of issued and outstanding shares in the company to approximately 58.09 million new shares.
Company president and CEO, David Stadnyk, commented on the reasons behind the consolidation proposal, “We have decided to make this move so our corporate structure is more in line with that of our peers.”
He explained further, “Having less shares outstanding trading at a proportionately higher price should also facilitate the raising of the additional funds needed to complete construction at our Southern Ontario project so we can meet the conditions of our pre-build licence. That project is moving ahead on schedule and on budget.”
Investor reactions were mixed when it came to the company's decision with some Stockhouse bullboarders announced a selling spree while others touted Supreme's move and called for a buying regime.
Supreme was in the news recently when the company was highlighted in Stockhouse's own medical marijuana update three days ago.
Shares were down 11.11% on the news to $0.08 per share.
Currently there are 144.8m outstanding shares with a market cap of $11.6 million.