MYM Nutraceuticals to acquire 51% of cannabis producer
2017-02-01 09:55 ET - News Release
Mr. Jonathan Fiteni reports
MYM ANNOUNCES ACQUISITION OF MAJORITY INTEREST IN STAGE-4 LICENSED PRODUCER APPLICATION
MYM Nutraceuticals Inc. has entered into an exclusive agreement to acquire a 51-per-cent interest in Sublime Culture Inc., a company possessing an application -- currently in its inspection stage (stage 4 of five) -- to become a licensed producer under Health Canada's access to cannabis for medical purposes regulations. MYM will supply financing and resources to build out Sublime's medical marijuana facility in preparation for the inspection required to obtain a growing licence. If Health Canada auditors are then satisfied with a successful crop, MYM will be granted its distribution licence (stage 5, the final stage).
Pursuant to the agreement, MYM will issue one million common shares to the principals of Sublime and finance $1.8-million for the completion and initial operation of a licensed production facility. Once operation of the facility has commenced, the company has agreed to issue options to purchase 200,000 MYM shares to the shareholders of Sublime, as well as an additional 200,000 MYM options every year thereafter that the facility remains in operation and MYM is materially involved in its operation and production.
This is a key acquisition for MYM and its shareholders, as it allows the company an opportunity to become a licensed producer ahead of its own application being granted. In addition, it will give MYM the ability to design and operate an extraction and processing facility, and thereby accelerate the launch of its innovative brand of cannabis-infused nutraceutical products. MYM also expects to be able to capitalize on Sublime's expertise in the production of medicinal cannabis, as well as its connections in Eastern Canada.
Jonathan Fiteni, chief executive officer, commented: "The MYM team and I have worked very hard over the last two years, vetting assets and individuals in order to increase shareholder value and allow the company to start producing high-quality products. With this deal, we welcome aboard an experienced team from Sublime Culture Inc. We are thrilled for the opportunity to grow our brand with a group that shares our vision and passion for this industry."
Thomas Lahache, founder and president of Sublime, commented: "This is an incredible opportunity for me and my team to be able to work with a group who are as passionate as we are about this great emerging industry. It comes at a time when so many companies are being forced to close down before completing the ACMPR process. By joining forces with the MYM team, we are able to get the support we need to complete our facility for inspection and are looking forward to all of the exciting possibilities ahead."
The completion of the transaction is subject to the approval of the Canadian Securities Exchange.
About MYM Nutraceuticals Inc.
MYM's primary focus is developing high-end organic medicinal marijuana supplements and topical products. MYM also has an interest in the development of high-density farming facilities and technologies that allow MYM to expand its brand into the global market.
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