TORONTO, Nov. 27, 2019 /CNW/ – PRESS RELEASE – SOL International Investments Corp.’s portfolio firm CannCure Investments Inc., owner/operator of the licensed Florida healthcare marijuana remedy center A single Plant (previously named as three Boys Farms) and proposed purchaser of the famed California craft cannabis cultivator ECD Holdings, Inc., d/b/a Northern Emeralds, has announced it has entered into a mutual termination agreement and promissory note with MCP Wellness to terminate the binding letter of intent dated April 23, 2019 whereby the firm was to obtain 100% of the stock of MCP Wellness for $35 million in money and US$115 million in equity consideration in CannCure.
MCP is the Merida Capital Partners affiliate that owns the rights to personal 3 Michigan cultivation licenses, a processing license, nine licensed and operating provisioning centers (dispensaries), and six extra dispensary licenses, providing it the biggest retail footprint in the state of Michigan.
Each MCP and the firm have recognized that existing market place situations do not assistance a transaction of this size, and each parties and their respective shareholders are much better served focusing capital and sources on creating out their respective firms. SOL International will stay focused on the scale up of its quickly expanding Florida operations by way of A single Plant Florida, and MCP will concentrate on opening extra dispensaries and launching a cultivation facility in Michigan.
Collectively, SOL International and MCP have determined that although they are terminating their LOI to merge due to ongoing market place situations, they will continue to function with each other towards finalizing a strategic licensing agreement whereby MCP Wellness would engage Northern Emeralds to supply cultivation and processing regular operating procedures to MCP for a to be agreed upon royalty (topic to the receipt of all regulatory approvals). As MCP Wellness builds its cultivation footprint to go with its nine operating dispensaries, a strategic agreement with Northern Emeralds to introduce the highest good quality flower doable will be instrumental in establishing it as a single of the biggest vertically integrated operations in Michigan.
As portion of the amicable termination, the $12.five million sophisticated by SOL International and its wholly owned subsidiary CannCure to MCP Wellness will be repaid in complete more than the subsequent 12 months in month-to-month installments and two balloon payments at the six- and 12-month time frames. Whilst the promissory note is outstanding, CannCure will have the solution to obtain particular assets from MCP Wellness, convert any amounts due into stock in the Michigan operator, or full the initially contemplated transaction on substantially related terms. Any transactions contemplated herein are topic to regulatory approval.
The firm wishes to announce that the board of directors have resolved to alter the company’s fiscal year-finish from March 31 to Nov. 30, efficient right away. By moving the company’s reporting cycle to a non-calendar quarter basis, the firm aims to decrease the time constraints and administrative costs connected with getting the identical calendar quarterly reporting cycle as most other reporting issuers and to align its economic year-finish with other associated corporations. The notice for the year-finish alter necessary beneath National Instrument 51-102 has been filed beneath the company’s profile on www.sedar.com.
As a outcome, the firm will report audited economic final results for an eight-month transitional fiscal year from April 1, 2019 to Nov. 30, 2019 with a comparative of twelve-month audited economic statements from April 1, 2018 to March 31, 2019. Afterwards, the firm will revert to a customary quarterly reporting calendar primarily based on a Nov. 30 year-finish, with fiscal quarters ending on the final day in February, Might, August and November every year. The alter in the company’s economic year finish is topic to approval by the Canada Income Agency.