A Vancouver headquartered company that was in the ginseng businesses and became a casualty of COVID-19 pandemic restrictions is winding down its business.
Imperial Ginseng (TSX-V:IGP) is headquartered in B.C. but had its ginseng growing business in Ontario. It sold ginseng mainly to wholesalers in China.
In 2020, the company announced it would wind down its business, due to the impact of pandemic restrictions on the company, after its final harvest in 2023.
“In 2020, the company made a public announcement that it would wind up its subsidiary company’s ginseng operation upon the final harvest in FY2023 as it would be in the best interest of the stakeholders that the company exited the ginseng industry as a result of the hardship caused by economic and political factors, and a shortage of labour caused by the COVID-19 pandemic,” the company says in a management discussion and analysis (MD&A).
Following approval by the TSX, the company’s board of directors declared a cash distribution of $2.25 per common share to shareholders of record – a total payout of $17.22 million -- payable on January 26, 2024.
After the distribution, the company said it will have $400,000 in cash remaining, and will retain its public listing, possibly for purposes of a reverse takeover.
“With the completion of the farm operations, the board decided that, rather than dissolving the company, it will attempt to preserve some value in the company as a publicly traded corporation by maintaining it until a viable business alternative is identified," the company said in its MD&A analysis.
"The board is currently in the process of considering alternative business propositions and opportunities in hopes of securing a new business line, a potential reverse takeover or acquisition candidates looking for a publicly listed company.”
