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).