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Choom to Acquire ITI in Amalgamation Acquisition to Accelerate Legal Cannabis Production.

MANews-(C)2009-2018

20 March 2018 - Canada-based legal cannabis cultivator Choom (CSE: CHOO) (OTCQB: CHOOF) has agreed to acquire Canada-based International Tungsten Inc. (ITI) to amalgamate with Arbutus Brands to accelerate Choom's direction as a fully integrated cannabis group, the company said.

Terms of the transaction were not disclosed.

Pursuant to the definitive agreement, Arbutus Brands will amalgamate with ITI, with the amalgamated company remaining a wholly owned subsidiary of the company operating under the name of Arbutus Brands, and all of the issued and outstanding securities of ITI will be exchanged for securities of Choom.

ITI has entered into an agreement to acquire all of the issued and outstanding securities of Canada-based cannabis cultivator Specialty Medijuana Products Inc. (SMP).

The acquisition will enable Choom to acquire a company in British Columbia that has submitted its AOR evidence package to Health Canada and expects to receive its cultivation license in the next few weeks.

In accordance with the terms of the definitive agreement, ITI will amalgamate with Arbutus Brands following which the resulting amalgamated entity will continue as a wholly owned subsidiary of the company. In consideration for the completion of the transaction, the holders of ITI common shares will be issued one common share of the Company in exchange for every share of ITI held, up to a combined maximum of 92m common shares.

The closing of the transaction remains subject to a number of conditions, including the completion of satisfactory due diligence, receipt of any required shareholder, regulatory and third-party consents, the acquisition by ITI of SMP, and the satisfaction of other customary closing conditions.

Country: Canada

Sector: Agriculture/Forestry

Target: International Tungsten

Buyer: Choom

Vendor:

Deal size in USD:

Type: Corporate Acquisition

Financing:

Status: Agreed

Buyer advisor: , ,

Comment: Terms of the deal were not disclosed

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Publication:M & A Navigator
Geographic Code:1CANA
Date:Mar 20, 2018
Words:298
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