Wayland’s strategic review process
Today, Wayland Group’s (MRRCF) board announced that the company has started the process of exploring various strategic alternatives including a spin-off and a European listing of its international operations to enhance shareholder value and realize the full potential of the company’s international asset portfolio and its domestic assets in Canada.
Although Wayland’s board is convinced of the company’s current strategy, they believe that the company’s current stock price, which has lost 62.6% of its value since the beginning of this year, doesn’t reflect the actual worth of Wayland’s global portfolio. The company’s international operations consist of European, Latin American, and Asia-Pacific operations. Also, the board has retained Canaccord Genuity as its financial advisor for the strategic review process.
However, the board hasn’t set a timeframe for the completion of the review process. Also, the board has cautioned that there is no guarantee that the review process will lead to a transaction.
In a statement, Paul Pathak, chair of Wayland’s board, stated, “Our Board is committed to maximizing value for our shareholders. Our management team has done a terrific job of building a state of the art cultivation facility in Langton and securing significant distribution agreements with several of the Provinces, while at the same time assembling an impressive portfolio of international assets. Our end goal, however, is to translate that into value for our shareholders and we are confident that the results of our strategic review and potential spin-out of our international assets will be important steps to accomplish that.”
Despite the announcement, Wayland was trading 0.7% lower at 12:35 PM EST today. Since the beginning of 2018, the company’s stock price has declined by 62.6% as of the December 18 closing price. During the same period, peers iAnthus Capital Holdings (ITHUF) and Origin Agritech Limited (SEED) have returned 110.8% and -25.3%, respectively. Meanwhile, the ETFMG Alternative Harvest ETF (MJ) has returned -18.5% during the same period.