MYM closes acquisition of 51% interest in Sublime
2017-02-22 14:17 ET - News Release
Mr. Jonathan Fiteni reports
MYM CLOSES ACQUISITION OF MAJORITY INTEREST IN INSPECTION-STAGE LICENSED PRODUCER APPLICATION
MYM Nutraceuticals Inc. has completed its acquisition of a majority interest in Sublime Culture Inc. and its inspection-stage application to become a licensed producer of medical cannabis. As announced on Feb. 1, MYM will supply financing and resources to build out Sublime's production facility in preparation for inspection by Health Canada.
Pursuant to a share exchange agreement between MYM and Sublime's two primary shareholders, in exchange for 250,000 Class A shares in the capital of Sublime, MYM issued 490,000 MYM shares to 9076484 Canada Inc., and in exchange for 260,000 Class A Sublime shares from CannaTechnology Inc., MYM issued 510,000 shares to that company. MYM now owns 51 per cent of the outstanding shares of Sublime and a commensurate 51-per-cent interest in the licensed producer application. As announced earlier this month, this is a vital acquisition for MYM and its shareholders. Obtaining a production licence under the access to cannabis for medical purposes regulations will significantly accelerate the launch of the company's innovative brand of cannabis-infused nutraceutical products. MYM will also be able to leverage Sublime's expertise and connections in Eastern Canada, as well as bring on key personnel to facilitate future growth.
A tour of the facility and other potential assets was conducted over the past weekend as the MYM team met with all the engineers, contractors and team members who will be responsible for running the facility once it is completed. Key benchmarks with respect to maximizing production space and the purchase of the property were established, and plans are now under way to stage the buildout of the entire building with the inclusion of a roof-top greenhouse that will maximize the total production canopy to 36,000 square feet. MYM management intends to pursue the purchase of the land and, upon successful inspection and issuance of a licence, start the additional buildouts, thereby allowing the company to own up to 90 per cent of Sublime and 100 per cent of the production facility. This will allow MYM to meet the demands it expects from its ever-growing client patient list and create even more shareholder value.
Jonathan Fiteni, chief executive officer, commented: "With the closing of this deal, MYM now possesses a majority interest in a late-stage licensed producer application. We are excited about working with Sublime to build out the facility in Laval and prepare for inspection. The opportunity in Quebec is much larger than we anticipated. Becoming a licensed producer will allow us to move aggressively on our plans to create exciting new products and engage potential patients who are currently using the dispensary model. Being able to fast-track our ability to produce quality cannabis products is a game changer for us and our shareholders. I am very proud of our team for the countless hours spent searching for the right partner and the new talent that we expect will join our growing company."