WINNIPEG, Sept. 19, 2019 /CNW/ – PRESS RELEASE – Delta 9 Cannabis Inc. has announced that it has entered into a binding letter of intent (LOI) to enter into a definitive agreement to obtain from Modern day Leaf Group Inc. all or substantially all of Modern day Leaf Group’s assets positioned in the Province of Alberta relating to two proposed retail cannabis shops. The acquisition will be completed by way of the company’s wholly-owned subsidiary, Delta 9 Cannabis Shop Inc., or 1 or a lot more of its nominee(s).
« The proposed acquisition of these added cannabis shops continues our technique of establishing a chain of Delta 9 branded retail shops across Canada, » stated John, Arbuthnot, founder and CEO of Delta 9. « Following completion of this acquisition we will have a total of six operating retail shops in Western Canada and we are actively seeking to raise this quantity as promptly as feasible. »
Delta 9 has now organized a committed group to assess retail expansion possibilities across Western Canada. Kronos Capital Partners acted as monetary advisor to the Modern day Leaf Group on the proposed transaction.
The acquire price tag for the proposed transaction is $1,300,000, topic to customary adjustments and other adjustments that may possibly be determined essential in the course of the company’s due diligence investigation respecting the proposed transaction. $1,000,000 of the acquire price tag will be happy by way of the issuance of 1,250,000 popular shares in the capital stock of the corporation at a price tag per popular share of $.80 primarily based on the closing marketplace price tag of the popular shares on the Toronto Stock Exchange (TSX) on the date hereof. $150,000 of the acquire price tag will be paid as a deposit that is non-refundable except exactly where the proposed transaction does not proceed due to the occurrence of particular events, or the discovery or disclosure of particular information and facts, described in the LOI. If the proposed transaction proceeds, the deposit will be applied against the acquire price tag, and the $150,000 balance of the acquire price tag will be happy in money on the closing date of the proposed transaction.
The LOI and the proposed transaction are topic to, amongst other situations: (i) the completion by the corporation of a satisfactory due diligence investigation (ii) the getting of all essential third celebration and governmental consents, authorizations and licenses essential in connection with the proposed transaction and the operation of the proposed Alberta cannabis shops following the proposed transaction, which includes, with out limitation, all consents, authorizations and licenses essential to be issued by Alberta Gaming, Liquor & Cannabis (AGLC) and (ii) the approval of the TSX.
Topic to a satisfactory due diligence investigation, management of the corporation anticipates the closing of the proposed transaction to happen on or about Nov. 30, 2019.