- Canada House Wellness Group (CHV) has entered into a definitive restated share exchange agreement in its acquisition of Montréal Cannabis Médical Inc.
- The first stage provides for the acquisition of 24.99 per cent of the shares of MTL Cannabis in exchange for 49.99 per cent of CHV’s common shares
- The second stage will result in the acquisition of the remaining 75.01 per cent of the shares of MTL Cannabis
- Canada House Wellness Group Inc. (CHV) is unchanged, trading at C$0.03 per share at 2:45 pm ET
Canada House Wellness Group (CHV) has entered into a definitive restated share exchange agreement in its acquisition of Montréal Cannabis Médical Inc.
It was going to be limited to a single transaction, but both companies agreed that two stages would work out for the better.
The first stage provides for the acquisition by the company of 24.99 per cent of the issued and outstanding shares of MTL Cannabis in exchange for 49.99 per cent of CHV’s 683,380,223 issued and outstanding common shares.
The second stage will result in the company’s acquisition of the remaining 75.01 per cent of the issued and outstanding shares of MTL Cannabis in exchange for such number of shares that, when added to the shares issued on closing, equals 80 per cent of CHV’s shares.
Canada House’s CEO, Chris Churchill-Smith explained that the integration of his company’s business with that of MTL Cannabis, included the recent completion of phase 1 of the retrofit and conversion of our ICM production facility in Louiseville, Quebec to deploy MTL Cannabis’ grow methodologies.
“We have achieved record revenues on both the recreational and medical segments of our business and expect this growth to continue. We look forward to welcoming Rich and Mitch Clement as major shareholders of CHV and continuing to work closely together to complete one of the industries most high impact transactions.”
The agreement also amends the criteria for the cash earnout payment of $5 million. This was conditional upon MTL Cannabis and IsoCanMed Inc. (now employing the genetics and grow methodologies of MTL Cannabis) achieving stand-alone revenue of $20 million and production of 10,000 kilograms of merchantable dried flower in each of the first 12 months and the second 12 months following the transaction’s closing.
Canada House Wellness Group’s goal is to become the leading cultivator of premium craft cannabis and provider of cannabinoid therapy, targeting the medical cannabis markets globally.
Canada House Wellness Group Inc. (CHV) is unchanged, trading at C$0.03 per share at 2:45 pm ET.
