Business
Olive Resource Capital Announces Agreement to Acquire C$2.5M Portfolio of Assets
Toronto, Ontario--(Newsfile Corp. - May 18, 2022) - Olive Resource Capital Inc. (TSXV: OC) ( "...
About this update from Olive Resource Capital Inc.
[{"type":"text","content":"Olive Resource Capital Announces Agreement to Acquire C$2.5M Portfolio of AssetsToronto, Ontario--(Newsfile Corp. - May 18, 2022) - Olive Resource Capital Inc. (TSXV: OC) (\"Olive\" or the \"Company\") is pleased to announce that it has entered into an agreement with CannaIncome Fund Corporation (\"CiF\") to acquire a portfolio of assets (the \"Transaction\") consisting of public equities, private equities, debt, convertible debt and warrants, having a deemed value of C$2,459,122.70 in exchange for 25,831,231 common shares of Olive (each a \"Common Share\"), representing a deemed issue price of $0.095 per Common Share, subject to adjustment. The Common Shares being issued to CiF are to be transferred to CiF's securityholders immediately following closing as part of the wind-up of CiF's business. The number of Common Shares to be issued remains subject to adjustment on a basis to be agreed 10 days prior to closing, if the relative value of the CiF portfolio has changed by more than 10%. The Transaction remains subject to a number of conditions, including receipt of the approval of the CiF shareholders and of the TSX Venture Exchange (the \"TSXV\") and receipt of certain consents and approvals required to transfer some of the assets.Derek Macpherson, Executive Chairman and Director stated; \"We are pleased to execute on this first step, albeit a small one, in our strategy to expand Olive's asset base with this net asset value based transaction. We would like to thank the management team at CannaIncome Fund for working with us to reach this agreement. We plan to continue to pursue accretive acquisitions to expand our asset base.\"Samuel Pelaez, President, CEO, CIO, and Director stated; \"We are adding quality assets to our portfolio, while reducing the portfolio weight of our largest holdings. The resulting portfolio is more diversified and retains exposure to near-term catalysts, both for the legacy assets and for some of the assets acquired.\"Benefits of the TransactionAcquiring Quality Assets - The Transaction will result in the acquisition by Olive of quality convertible debentures, along with private and public equities, a number of which have near-term catalysts which could present upside for shareholders of Olive. Expanding Olive's Asset Base - One of Olive's stated goals is to expand its investable assets, such that the ope...