Scythian Biosciences (CSE:SCYB) announced a definitive share purchase agreement with MMJ International Investments, a private company in Canada which owns the assets of Argentina-based ABP, a pharmaceutical import and distribution company.
As quoted in the press release:
ABP also holds a license to import cannabidiol (CBD) oil into Argentina. The Purchase Agreement supersedes the previously-announced business combination agreement between Scythian and MMJ to effect the Acquisition. Closing of the Acquisition remains subject to a number of conditions including the receipt of all applicable regulatory approvals and third party consents and the completion of the Company’s due diligence investigations of MMJ and ABP.
In accordance with the terms and conditions of the Purchase Agreement, Scythian will satisfy the purchase price by the issuance of 6,176,320 common shares in the capital of the Company (“Common Shares”) to the shareholders of MMJ at a price per share equal to the closing trading price of the Common Shares immediately prior to the closing date. The Company expects the closing to take place on September 17, 2018.
The Acquisition is one of Scythian’s final transactions in South America and the Caribbean, where the Company’s strategic investments and regional partnerships had previously been focused.
The acquisition of MMJ and ABP will continue Scythian’s strategic exit from its South American and Caribbean investments and partnerships, a process which includes the Company’s previously announced disposition of regional assets for an aggregate of $193 million. As disclosed on August 23, 2018, Scythian intends to develop its presence in a number of US states.