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MYM to acquire Crop Infrastructure
Posted on Friday, 08 November 2019 15:54
MYM Nutraceuticals has unveiled the signing of a letter of intent to acquire Crop Infrastructure, a Vancouver-headquartered provider of strategic investment for the cannabis industry.
Under the terms of the proposed transaction, the buyer will issue one share in itself for every 10.5 items of stock acquired in the target.
This equates to an issue of 16.35 million shares, representing a 10.9 per cent share of MYM, thereby valuing the deal at CAD 4.01 million (USD 3.03 million), based on the firm’s close of CAD 0.25 on 6th November, the last trading day prior to the statement being issued.
Following completion, the acquiror said it intends to develop its new subsidiary by implementing an extensive restructuring plan, noting that it also anticipates carrying out a series of other purchases.
Crop chief executive Michael Yorke was full of praise for the group’s new owners, saying the deal is in the best interests of its shareholders and noting that MYM has helped to realign its strategy.
Completion of the acquisition remains subject to the green light being received from the target’s shareholders and the court, as well as a definitive agreement being reached.
No details of when closing can be expected to occur have been disclosed as yet.
Crop’s portfolio of assets includes two locations in Washington State, medical and recreational operations in California, a 1,012-acre cannabis farm in Nevada and a CBD farm spanning some 500 acres.
The company is publicly traded on the Canadian Securities Exchange, as well as in Frankfurt and on OTC Markets in the US.
Crop actually announced an asset sale of its own earlier this year; back in February, it agreed to sell stakes in XHemplar and Jamaica Crop Corporation to World Farms for CAD 2.00 million.
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