The deal will see the cannabis company pay $93.3 million in equity and $43.2 million in cash for 70 per cent of CannCure
Scythian Biosciences Corp., an internationally focused Canadian cannabis company, is pushing into the Florida medical marijuana market after signing an arm’s length, binding letter of intent to acquire CannCure Investments Inc.
The deal will see Scythian pay $93,300,000 in equity and $43,200,000 in cash in return for 70 per cent of CannCure, with an option to purchase the remaining 30 per cent at the same valuation.
CannCure, in turn, is in the process of acquiring two Florida-based entities — one is an unnamed health and wellness organization and the other is 3 Boys Farms LLC, which possesses one of the state’s lucrative medical marijuana licences.
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Scythian’s deal is contingent on receiving all relevant government approvals, and on the closure of CannCure’s deal.
According to a press release, 3 Boys is authorized to cultivate, process and dispense medical cannabis in Florida, and has 40,000-square-feet of greenhouse space.
Scythian, which has close ties to cannabis giant Aphria Inc., also announced that it will be delisting it’s shares from the TSX Venture Exchange and that it has received conditional approval to list on the Canadian Securities Exchange. It will also voluntarily withdraw its application for listing on the Nasdaq in New York.
Date: August 6, 2018
Source: Financial Post
