Cannex Capital Holdings (CSE:CNNX) announced a binding letter agreement with 4Front Holdings to combine businesses in an all-stock transaction.
As quoted in the press release:
Subject to the approval of the Canadian Securities Exchange (the “CSE”), the combined company will continue to trade on the CSE initially under Cannex’s existing name and the ticker symbol CNNX. The Interim Agreement will be superseded by a definitive agreement (the “Definitive Agreement”) governing the Transaction.
The combined entity will represent a new standard for operational excellence and integrity under one umbrella within the cannabis industry. The resulting company will encompass proven management and operational skills in large-scale indoor cultivation facilities that boast industry-leading yields, the manufacturing and branding of infused products, edibles and other derivative products, and proven experience managing curated customer-centric retail operations. The combined company will also have a very strong business development team complemented by acknowledged regulatory and compliance experts to identify and support new market growth alongside continued expansion opportunities.
Josh Rosen, co-founder and CEO of 4Front, will become CEO of the combined company while Anthony Dutton, Cannex’s CEO, will take on a senior capital markets and business development role. Leo Gontmakher, COO of Cannex, is expected to assume the same role in the combined company.