Scythian Biosciences Closes Acquisition of Argentinian Pharmaceutical Importer/Distributor ABP.
24 September 2018 - Canadian research and development company Scythian Biosciences Corp. (TSX Venture: SCYB) (Frankfurt: 9SB) (OTC NASDAQ Intl: SCCYF) has closed a business combination agreement with MMJ International Investments Inc., owner of Argentina-based pharmaceutical import and distribution company ABP S.A., the company said.
ABP has a license to import, sell and distribute medical products and derivatives in Argentina. ABP also holds a license to import CBD oil into Argentina.
Under the terms of the agreement, Scythian will acquire all of the issued and outstanding common shares of MMJ by way of a three-cornered amalgamation whereby MMJ will amalgamate with a wholly-owned subsidiary of the company.
In consideration, Scythian will issue an aggregate of 6,176,320 common shares of the company to the shareholders of MMJ.
The agreement supersedes the non-binding letter of intent between Scythian and MMJ previously announced on March 12, 2018, which was extended on March 29, 2018, and extended again on May 1, 2018.
The transaction will not constitute a "Reverse-Takeover" of Scythian under the policies of the TSXV.
ABP has had a strong platform from its distribution and retail business to build on, having had revenues in excess of USD 10m per year since 2014, with over USD 11m in 2017.
Scythian, working with ABP, will focus on continuing to build out ABP's distribution and retail sales network, while strategically leveraging the License for expansion purposes.
On April 9, 2018, Scythian announced that ABP had received its license to import CBD oil for research and development purposes.
Shortly after this, ABP issued its first purchase order of CBD oil from Aphria Inc. to be imported into Argentina for use in pioneering clinical studies conducted by Argentina's top neurologists and pediatric specialists at the Dr. Juan P. Garrahan Pediatric Hospital.
The study, which will be conducted over 2.5 years, is investigating the use of cannabis in treating refractory epilepsy in children and will determine the product's pharmacokinetics for the optimization of dosage in future treatments.
Additionally, with the support of Scythian and ABP, a training program will be conducted during and after the study to train and educate a network of specialiSed doctors across multiple provinces in Argentina using Aphria's pharmaceutical grade medical cannabis.
Scythian is a research and development company focused on advancing prevention and treatment efforts for concussion and traumatic brain injury with its proprietary cannabinoid-based combination drug therapy.
Target: MMJ International Investments
Buyer: Scythian Biosciences
Deal size in USD: 20m
Type: Corporate Acquisition
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||Sep 24, 2018|
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