US marijuana company MJardin to go public in Canada via reverse takeover

Another notable U.S. marijuana company is completing a reverse takeover in Canada so it can go public north of the border.

Denver-based MJardin – which operates cultivation, processing and retail facilities in North America and has an office in Toronto – plans to trade on the Canadian Securities Exchange (CSE) through a reverse takeover (RTO) of an inactive Toronto company.

According to a news release, MJardin has inked a deal with Toronto-based Sumtra Diversified (TSX Venture Exchange: SDV.H), formerly an investment holding company, to merge with Sumtra’s subsidiary, Sumtra Diversified (USA).

Under the deal, Sumtra will change its name to MJardin Group and have its shares delisted from the TSX Venture Exchange.

Here’s what you need to know:

  • In 2014, Sumtra ceased active business operations, and in October 2016 a trading halt was imposed on its shares. According to Bloomberg, the company no longer has “significant operations.”
  • Once the RTO is completed, MJardin will have its common shares listed on the CSE.
  • Shareholders from both sides must approve the deal, and it’s expected to be finalized no later than Nov. 30.
  • As part of the RTO and its listing on the CSE, MJardin plans to complete a private placement of its stock to raise up to 20 million Canadian dollars ($15.2 million).

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4 comments on “US marijuana company MJardin to go public in Canada via reverse takeover
  1. Brett Roper on

    And our next contestant is … I wish the MJardin the best with this move although feel that the US marketplace should have been able to generate $15M US for them and more … QX status on the OTC marketplace might have been good as well although a dual listing down the road may make sense. Careful with the RTO process though (similar to a reverse merger here in the states).

  2. Doug Calder on

    I have set aside a piggy bank to fill for when Mjardin makes its IPO. Hopefully the stocks will start low so there will be a successful rush and a quick rise for this company. Many of us up here in the frozen north called Canada do not trust Prime Minister Trudeau. We regard him as a bit of a hippy flake. However he’s placed himself in front of an avalanche of this marijuana industry so if he doesn’t come clean on his promise to legalize, he will lose the next election and go back to sitting on his mother’s lap.

    The name Mjardin is amusing to hear pronounced in “American” English considering “jardin” is the French word for garden. Pronouncing it the French way might be a fun idea once established in Canada, so Quebec and the bilingual nature of Canada, which is somewhat overstated, will buy into it very readily. Besides, the French pronunciation seems to have that international class to it.

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