Good Natured Products Inc V.GDNP.H

GDNP Trading Halted?

[jermoguy]

I just logged into my brokerage to see how my portfolio did today.  I see that GDNP ended the day at .59 but it said trading halted.  Anyone know why?

[dileas48s]

Holy Cr@p! Nov 30, 2020 VANCOUVER, BC, Nov. 30, 2020 /CNW/ - The following issues have been halted by IIROC: Company: Good Natured Products Inc. TSX-Venture Symbol: GDNP All Issues: Yes Reason: At the Request of the Company Pending News Halt Time (ET): 16:43 

[faraj69]

I wish I knew. GL

[HenoftheWoods]

It smells like a secondary... which I would support. It would be great to decrease some of that debt on the balance sheet. Of course, it could be for a completely different reason.  We shall see soon. Cheers, Hen

[Deadornot]

Secondary what?

[FreddieMac]

A secondary sale is when an existing shareholder sells some or all of their existing shares in order to put cash into the pockets of the investor.    This is in contrast to a primary or treasury offering, when it is the company selling new shares in order to raise money for the company.  So can you please explain to me how a secondary sale, as you call it, would reduce the debt

[HenoftheWoods]

@Freddiemac Thanks for raising that point. Technically, I should have used the term follow-on offering. That is what I meant, and that was clear enough from my post since I also said the company could use some of those funds to retire debt. Some people use the term "secondary" loosely like me to refer to a follow-on offering (please read the excerpt below). Anyway, at this moment we don

[Canoutchie]

I would agree. A financing of some sort appears to be the most likely scenario. It will be interesting to see the accompanying commentary from Good Natured about the reasons for the financing and what they intend to do with the money... debt reduction or perhaps another asset purchase. We shall see!

[dileas48s]

Given the filing on Sedar last week it does seem like it'll be a financing, likely to include some dilution.  Also, Paul has spoken a lot about acquisitions, so it wouldn't surprise me to learn that this financing is directly related to a key acquisition.  I'm curious if the news will be released before market opening, or not.

[shareswapper]

My guess would be a dilutive offering to fund an acquisition.  Great news as it sets the company up for the next leg of growth.  Unfortunateky in the short term it will likely take the shares down .... 

[jermoguy]

I don't understand the trading halt at the end of the day.  I just checked the Good Natured site and there is no announcement or news, and the market today (Dec 1) opens in 5 minutes.  If trading resumes on this stock, what was the point of halting it yesterday?  And if trading is still halted today, why not release the news pre-market open?  Is this normal?

[dileas48s]

In my limited experience the halt is put in place because something has leaked, or there are concerns something might leak.  The lack of a resumption suggests that the final paperwork for whatever is happening isn't finished yet.   I've even seen halts like this extend into a day or two.  If this does include an acquisition it wouldn't be uncommon for the details

[jermoguy]

Thanks for the insight and context.  Good to know.  My only experience in seeing this is a stock that something bad happened in the company and people were just dumping their stocks...I guess before the halt, the fact that the share price rose outside the 2-3 day trading range is a good sign.