Canadian cannabis producer Invictus plans to spin off wholly owned subsidiary Poda Technologies as it looks to tap into U.S. and global business opportunities.
The Vancouver-based firm, which trades on the TSX Venture Exchange under the ticker symbol GENE, plans to turn Poda into a stand-alone entity valued at roughly $1.9 million, according to a news release.
That situation has led a growing number of Canadian cannabis firms to sell off or spin off their U.S.-based assets.
Poda is a zero-cleaning vaporizer system that can be used with vaporizable substances that include cannabis, tobacco, e-liquids, concentrates, coffee and more.
Under the proposed arrangement:
- Each common share of Invictus will be exchanged for one new common share of the company and one Poda common share.
- Each Invictus stock option will be exchanged for one new stock option of Invictus and one Poda stock option.
- Each Invictus warrant will be exchanged for one new warrant of the company and one Poda warrant.
Upon completion of the spinoff, Poda will apply to list its common shares on the Canadian Securities Exchange. Management of Invictus and Poda will remain the same once the deal is completed, the company said.
Invictus officials were not immediately available for comment.