Scythian Biosciences (TSXV:SCYB) announced it entered into a binding letter of intent to acquire Marigold Acquisitions.
As quoted in the press release:
The Acquisition will result in Scythian becoming a major stakeholder of Marigold Projects Jamaica Ltd. (“Marigold”), a Jamaican company, which has received conditional licenses to cultivate, process, sell and provide therapeutic or spa services utilizing cannabis products. In consideration, Scythian will issue 1,500,000 common shares at the current price per share of $23.00 to the selling parties. Following completion of the Acquisition, the Company will own a 49 [percent] interest in Marigold as well as a 95 [percent] royalty interest in the net revenues from products sold by Marigold.
Marigold was granted one of only three original permits in Jamaica by the Ministry of Science and Technology for the research and development (“R&D”) of cannabis products.
The experimental R&D permit allows for the immediate cultivation of cannabis. In addition, the University of West Indies and Marigold have signed a strategic agreement to jointly develop and test products derived from high cannabidiol cannabis sativa strains to establish their efficacy in treating diabetes, hypertension, pain and other ailments.