Business
MMJ PhytoTech Ltd (MMJ.AX) Core Cannabis Brands to List on TSX-V via RTO
Perth, Australia (ABN Newswire) - MMJ PhytoTech Ltd (ASX:MMJ) ("MMJ" or "the Company") is ple...
About this update from Super Lithium Corp.
[{"type":"text","content":"MMJ PhytoTech Ltd (MMJ.AX) Core Cannabis Brands to List on TSX-V via RTO\nPerth, Australia (ABN Newswire) - MMJ PhytoTech Ltd (ASX:MMJ) (\"MMJ\" or \"the Company\") is pleased to advise that it is set to unlock significant value for shareholders through the spin out of its core cannabis subsidiaries, United Greeneries Holdings Ltd (\"UG\" or \"United Greeneries\") and Satipharm AG (\"Satipharm\"), on the TSX-V. Highlights: - Strategic spin out of Canadian subsidiary United Greeneries and Swiss subsidiary Satipharm by way of a reverse takeover of the TSX-V listed entity Top Strike Resources (TSX-V; TSR) - TSX-V listing of core cannabis subsidiaries will provide MMJ shareholders with exposure to rapidly expanding Canadian cannabis market - Top Strike to pay C$2.5M in cash and C$37.5M in shares to MMJ - MMJ management to be responsible for operations of the resulting TSX-V listed company - Direct market comparisons to Canadian peer companies expected to unlock significant near-term shareholder value - Top Strike to become a large-scale cannabis producer targeting supply to the Canadian medical and recreational market, which is estimated to be an C$8b market by 2024 - Black Spruce Merchant Capital to act as lead manager for the transaction providing extensive relationships into Canadian capital markets MMJ has signed a binding Term Sheet with TSX-V listed company Top Strike Resources Limited (TSX-V: TSR) (\"Top Strike\"), for Top Strike to acquire 100% of the issued shares of UG and Satipharm respectively. The transaction, which remains subject to a number of conditions, including shareholder approval, provides MMJ shareholders with exposure to the rapidly growing recreational and medical cannabis markets in Canada. Post spin out, MMJ shareholders will, through their shareholdings in MMJ, have an indirect ownership in a fully-financed, growth-focused cannabis company with two key operating brands in UG and Satipharm. The aggregate sale price of UG and Satipharm (C$40 million) represents approximately 97% of MMJ's current market capitalisation (undiluted and based on a share price of A$0.24). Transaction Highlights / Key Benefits: - Post transaction, MMJ shareholders will have significant exposure to two of the largest commercial opportunities in the global cannabis sector. - TSX-V listing to fast-track growth of both UG and Satiphar...