Vertical Peak Holdings Inc., a British Columbia-based company focused on the cannabis industry, announced Tuesday that it is ready to finalize its proposed distribution of Neural Therapeutics Inc. shares to its shareholders.
The move, slated for May 23, represents a key strategic step in the company’s broader business plan.
Vertical Peak (CSE: MJMJ) (OTC: SPLIF), which develops and makes branded cannabis products, has a portfolio that includes flower, pre-rolls, vapes, edibles, and oil extracts for both medical and adult recreational use. The company operates under multiple licenses in California, which permit manufacturing, retail, and cultivation operations.
At the heart of Vertical Peak’s portfolio lie the OutCo and Thrive brands, which were added in 2021 following the acquisition of OutCo’s business.
Neural Therapeutics, the company whose shares are to be distributed, is an ethnobotanical drug discovery and development company. It focuses on developing products and conducting research with psychoactive plants, with its initial focus on a cactus known as San Pedro (Echinopsis pachanoi), which contains mescaline.
Vertical Peak clarified that the distribution is part of a previously announced plan of arrangement, in which shareholders who own Vertical Peak shares as of Friday, May 19 will be eligible for the distribution. The process will commence on the effective date, with an ex-dividend date set for Thursday.
Each Vertical Peak shareholder will receive a portion of Neural shares, directly proportional to their current Vertical Peak holdings. The company anticipates that each shareholder will receive approximately 0.013884682 of a Neural share for each lesser-value Vertical Peak share and about 0.13884682 of a Neural share for each higher-value Vertical Peak share.
Vertical Peak has established that it will not distribute fractional Neural shares; instead, any fractional shares will be rounded down to the nearest whole share. If rounding down would leave a shareholder with no Neural shares, they will receive one full share.
Neural Therapeutics also revealed its plans to list its shares on a Canadian stock exchange, which depends on the company meeting all listing requirements and gaining exchange approval.