Canadian renewables firm SusGlobal scraps Nasdaq up-listing plan

Canadian waste-to-energy firm SusGlobal Energy Corp (OTCMKTS:SNRG) has given up on its plan to up-list its shares on the Nasdaq stock exchange and has filed for withdrawal of its registration statement with the Securities and Exchange Commission (SEC).

The company said in a brief filing earlier this week that it does not intend to pursue the contemplated offering at this time. The motives for the move were not provided.

SusGlobal announced the up-listing plan in January 2022. A few months later, it set the terms of the proposed transaction, seeking to raise USD 12 million (EUR 11.2m) in gross proceeds.

The Toronto, Ontario-based firm planned to place 2.4 million units in the offering at an assumed price of USD 5.00 apiece. Each unit consisted of one share of common stock and one warrant to purchase one share of common stock, exercisable at 120% of the price per unit in the offering.

Additionally, certain insiders intended to sell roughly 1.32 million shares. There was also an overallotment option provided for up to 360,000 shares of common stock.

SusGlobal planned to use the gross proceeds from the up-listing for general corporate purposes, including working capital, expanded sales and marketing activities, increased research and development expenditures and funding growth strategies.

At the expected terms, the transaction would have valued the Canadian company at about USD 157 million, based on the total number of outstanding shares and assuming all warrants were exercised in full.

Shares in SusGlobal, which have been listed on the OTC Markets since December 2018, last traded 1.56% higher at USD 0.3124. The company’s market capitalisation stands at USD 37.7 million.

SusGlobal is renewables company focused on acquiring, developing and monetising proprietary technologies in the waste-to-energy and regenerative products application. It is focused on providing a full range of services for handling organic residuals for biogas recovery, liquid fuels production and organic fertilisers.

(USD 1 = EUR 0.934)

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