Business
Sunniva Inc. to Spin Out and List Canadian Assets on Toronto Stock Exchange and NASDAQ Stock Market to Unlock Shareholder Value
Sunniva Inc. to Spin Out and List Canadian Assets on Toronto Stock Exchange and NASDAQ Stock Market to Unlock Shareholder Value.
About this update from Sunniva Inc
[{"type":"text","content":"\nVANCOUVER, British Columbia, July 10, 2018 (GLOBE NEWSWIRE) -- via NetworkWire -- Sunniva Inc. (\"Sunniva\" or the “Company”) (CSE:SNN) (OTCQX:SNNVF), a North American provider of cannabis products and services, is pleased to announce that it intends to spin out its Canadian assets into a separate Canadian entity and apply to list the shares on the Toronto Stock Exchange (“TSX”) and the NASDAQ Stock Market (“NASDAQ”) in an effort to unlock the underlying value of the Company’s assets on both sides of the border (the “Spinout Transaction”). The Company has retained Canaccord Genuity Corp. to act as a financial advisor in connection with the Spinout Transaction and other strategic initiatives.\n The proposed Spinout Transaction of the Canadian assets would include Sunniva Medical Inc. (“SMI”), which is building the Sunniva Canada Campus, 740,000 square feet of purpose-built current Good Manufacturing Practice (“cGMP”) designed greenhouse facilities in British Columbia. SMI has a take or pay supply agreement with Canopy Growth Corporation (“Canopy”). Under the terms of the initial two-year agreement, which includes the distribution of Sunniva branded products, Canopy will purchase approximately 45% of Sunniva’s annual production capacity. The Canadian assets also includes Natural Health Services Ltd. which owns and operates a network of 7 clinics in Canada specializing in medical cannabis under the Access to Cannabis for Medical Purposes Regulations. The US assets that would remain with the current Canadian Securities Exchange (“CSE”) listed entity include CP Logistics, LLC (“CPL”) operating the Sunniva California Campus, 489,000 square feet of state-of-the-art, purpose-built greenhouse facilities in Cathedral City, California that is currently under construction and includes a flagship onsite dispensary with a distribution license. CPL also operates a licensed extraction facility in Cathedral City, which began operations in June 2018, and has entered into services agreements to manufacture extracted products for significant brand partners in California and will continue to look to identify new business relationships and customers and expand its extraction capabilities at the facility. The Company also anticipat...