Sunniva retains Canaccord Genuity
Sunniva (CSE: SNN) (OTCQX: SNNVF) announced the completion of its bought deal offering for aggregate gross proceeds of Can $23.0 million. A total of 4,370,000 units were sold including 570,000 Units issued as a result of the full exercise of the Underwriters' over-allotment option, at a price of $5.27 per Unit. The Offering was conducted by a syndicate of underwriters co-led by Beacon Securities and Canaccord Genuity, and including Haywood Securities. SNN also updated milestones expected for the months ahead including an additional three month push back of production from the Canadian facilities.
All of this was interesting but the most interesting announcement was SNN has retained Canaccord Genuity “…who has commenced a formal process to review all strategic alternatives which may include a sale of, an investment in, or a joint venture for some or all of the Company's Canadian assets with the intention to spin out the Company's Canadian assets into a separate Canadian entity and apply to list its shares on the Toronto Stock Exchange and the NASDAQ Stock Market.”
Given my belief that SNN is greatly undervalued, I think whatever suggestions Canaccord comes up will be well accepted by the markets. This will likely be the first step to unlocking values for shareholders, that is, for the stock price to begin a recovery phase.