Is SunOpta, Inc. (USA) (NASDAQ:STKL) Being Forced to Sell the Company?


SunOpta, Inc. (USA) (NASDAQ:STKL) shares rose 26.70% to $4.84 on Friday despite reports that a hedge fund is telling the company to explore a sale.

SunOpta, Inc. (USA) (NASDAQ:STKL) operates businesses focused on a healthy products portfolio. It focuses on global ingredients segment, which aggregates its North American and international raw material sourcing and supply operating segments focused on the procurement, processing and sale of specialty and organic grains and seeds, fruits, grain- and cocoa-based ingredients, and other commodities, and its consumer products segment, which covers healthy snacks, beverages, and fruit snacks.

For hedge fund Tourbillon Capital Partners, which is the company’s largest shareholder at 9.9% stake, the company’s board should explore a sale because of its poor share price performance in the past few years even with its unique position in hard-to-find organic products and non-genetically modified ingredients market.

“We have become increasingly concerned that the company may be pursuing an uncertain business plan without a thorough evaluation of all value-maximizing alternatives. Despite its strengths, the company has been unable to translate its quality products and services into a thriving business with an attractive public market valuation,”

Tourbillon Chief Executive Officer Jason Karp said in a letter to the SunOpta, Inc. (USA) (NASDAQ:STKL) board filed with the Securities and Exchange Commission.

For now, SunOpta, Inc. (USA) (NASDAQ:STKL) has said that they appreciate the input and would review the firm’s suggestions. First-quarter earnings figures for the company have been disappointing as it posted a 29% year-over-year jump in revenue but swung to a $10 million loss compared to the $5 million profit it recorded in the same period a year ago.

According to Chief Executive Rik Jacobs, the company is increasing its focus on private-label products, which it believes will create long-term value for shareholders.

“We’re off to a good start in many respects, but recognize that we still have work to do, especially in operations where we simply have to do better in preventing issues,”

Jacobs said in their latest earnings call.


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