Here are the today’s cannabis news briefs for April 10, 2018:
Kush Bottles (OTCQB: KSHB), a leading provider of packaging, supplies, vaporizers, accessories and branding solutions for the regulated cannabis industry, announced today it has entered into a merger agreement to acquire Summit Innovations, LLC, a leading distributor of hydrocarbons to the legal cannabis industry based in Denver, Colorado. This acquisition marks Kush Bottles’ entry into a new business vertical supplying gas to cannabis extractors that turn cannabis plants into oils.
Under the terms of the merger agreement, Summit Innovations, LLC will merge into a wholly-owned subsidiary of Kush Bottles in exchange for 1,280,000 shares of Kush Bottles common stock and $3.2 million in cash, a portion of which will be held back to satisfy certain post-closing obligations. Kush Bottles will also issue up to an additional 1,280,000 shares of Kush Bottles common stock if the Summit Innovations business achieves certain earn-out milestones of up to $12.0 million in eligible revenues during the twelve-month period following closing. Additional details on the acquisition can be found in the press release below.
Affinor Growers Inc.
Affinor Growers Inc. announced today that it will not exercise its overallotment option that was previously announced on March 8, 2018. The company was able to arrange a private placement of 9,090,910 units of the company, at $0.11 a share, for a total of $1 million. Proceeds from the private placement, which will close in the coming days, will go towards general expenses and corporate development. Additionally, the company has granted approximately two million shares, at a price of $0.115 per share, to its officer and director, which will expire on April 5, 2021.
Benchmark Botanics, Inc.
Benchmark Botanics has announced that the company, along with its wholly-owned subsidiary Potanicals Green Growers Inc., has entered into an agreement with 1139000 B.C. (1139) for the acquisition, ownership, and development of a medical cannabis greenhouse operation to be located in Pitt Meadows, British Columbia. The joint venture will be owned 75% by 1139 and 25% by Potanicals. Under the agreement, Benchmark has the ability to acquire, from both 1139 and existing shareholders, 51% or more of the property through a joint venture with 1139. For its initial 75% interest in the joint venture, 1139 will purchase the property for $6.2 million CAD. The property will be held in a trust by 1139. In addition, 1139, at its own cost, will make all of the necessary developments and upgrades required for Potanicals Green Growers to extend its license from Health Canada for cultivation and production of medical cannabis under the Access to Cannabis for Medical Purposes Regulations.
Scythian Biosciences Corp.
Scythian Biosciences Corp. announced today the details of a 4-for-1 stock split, which was previously announced on March 12, 2018. Under the stock split, each shareholder of record, as of the close of business on April 13, 2018, will receive three additional shares of Scythian. Shares of Scythian are expected to begin trading ex-distribution on a split basis at the opening on April 12, 2018. The stock split will increase the number of common shares from 7,333,397 to 29,333,588. “With this stock split we are very pleased to be able to enhance the availability and liquidity of our shares to allow more participation in Scythian’s growing accomplishments. This is a reflection of our continuing growth, and our potential for further expansion worldwide,” said Scythian CEO, Jonathan Gilbert, in a statement.