Delta’s IND DairyTech (TSX-V:IND) has had enough with the public markets.
On Friday, the China-focused raw milk producer announced plans to consolidate its common shares and cancel a listing on the TSX Venture Exchange.
The company, which is focused on establishing a dairy herd in China, did not give a reason for the move, other than to say that a special committee of the board had “determined that the transaction was in the best interest of the company and is fair.”
IND’s shares were up 80% to $0.45 on news the company was going private.
The deal comes a day after IND issued a news release saying it had discovered accounting “errors” in three of its lease agreements, which were originally treated as capital leases but have since been determined operating leases.
IND could not be reached for comment.
The news comes at a time when Canadian-listed firms with a focus on China are facing increased scrutiny after research firm Muddy Waters suggested earlier this month that Sino-Forest Corp. (TSX:TRE) had inflated the value of its timber assets.
IND shareholders will vote on the take private transaction at a special meeting in Beijing on July 29.
Joel McKay
Twitter:jmckaybiv