Another notable U.S. marijuana company is finishing a reverse takeover in Canada so it will probably go public north of the border.
Denver-based MJardin – which operates cultivation, processing and retail amenities in North America and has an workplace in Toronto – plans to commerce on the Canadian Securities Exchange (CSE) by means of a reverse takeover (RTO) of an inactive Toronto company.
According to a information launch, MJardin has inked a cope with Toronto-based Sumtra Diversified (TSX Venture Exchange: SDV.H), previously an funding holding company, to merge with Sumtra’s subsidiary, Sumtra Diversified (USA).
Under the deal, Sumtra will change its identify to MJardin Group and have its shares delisted from the TSX Venture Exchange.
Here’s what you want to know:
- In 2014, Sumtra ceased lively enterprise operations, and in October 2016 a buying and selling halt was imposed on its shares. According to Bloomberg, the company not has “significant operations.”
- Once the RTO is accomplished, MJardin may have its widespread shares listed on the CSE.
- Shareholders from each side should approve the deal, and it’s anticipated to be finalized no later than Nov. 30.
- As a part of the RTO and its itemizing on the CSE, MJardin plans to full a personal placement of its inventory to increase up to 20 million Canadian dollars ($15.2 million).