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Mettrum to Sell Non-Core Subsidiary for $7 million and Enters Three Year Product Supply Agreement
Mettrum to Sell Non-Core Subsidiary for $7 million and Enters Three Year Product Supply Ag...
About this update from M3 Metals Corp.
[{"type":"text","content":"\n\n\n\nMettrum to Sell Non-Core Subsidiary for $7 million and Enters Three Year Product Supply Agreement\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nMettrum to Sell Non-Core Subsidiary for $7 million and Enters Three Year Product Supply Agreement\nCanada NewsWire\nTORONTO, Sept. 20, 2016\n\n\n\nStrategic Transaction Opens New Sales Channel Opportunity to Canada's Largest Construction Labor Union\n\nHighlights:\n\n\nSupply Agreement Expected to Generate up to $40mm in Revenue and Make a Material Contribution to Profitability \nSale Agreement of Non-Core Asset adds Non-Dilutive $7mm to Balance Sheet \nAccelerates Previously Announced Consolidation, Improving Operating Performance\n\n\n\nTORONTO, Sept. 20, 2016 /CNW/ - Mettrum Health Corp. (\"Mettrum\" or the \"Company\") (TSXV:MT), a vertically integrated provider of cannabis products, is pleased to announce that it has entered into an agreement with Cannabis Care Canada Inc. (\"CCC\") to sell to CCC its wholly-owned subsidiary Mettrum (Bennett North) Ltd. (\"Bennett Road North\"), which is licensed to produce and sell dried cannabis and cannabis extracts for medical purposes.  CCC is financially backed by Laborers International Union of North America (\"LiUNA\"), North America's single largest construction union with over 100,000 Canadian members. Under the terms of the agreement, CCC will pay $7 million in cash to acquire Bennett Road North and enter into a three-year Supply Agreement that is expected to generate up to $40mm in revenue for Mettrum over the next three years. As part of the transaction, CCC will assume all outstanding obligations associated with Bennett Road North. \n\nOnce the transaction is completed in the coming months, Bennett Road North will be renamed Starseed Medicinal Inc. (\"Starseed\") and will become a wholly-owned subsidiary of CCC, whose board members include Mr. G. Edmund King (former CEO and Chairman of Wood Gundy), Dr. Hugh E. Scully (previously president of both the Ontario and Canadian Medical Associations), and retired Major General Lewis Macke...