TORONTO, Nov. 27, 2019 /CNW/ – PRESS RELEASE – SOL Worldwide Investments Corp.’s portfolio enterprise CannCure Investments Inc., owner/operator of the licensed Florida healthcare marijuana therapy center One particular Plant (previously named as three Boys Farms) and proposed purchaser of the famed California craft cannabis cultivator ECD Holdings, Inc., d/b/a Northern Emeralds, has announced it has entered into a mutual termination agreement and promissory note with MCP Wellness to terminate the binding letter of intent dated April 23, 2019 whereby the enterprise was to obtain 100% of the stock of MCP Wellness for $35 million in money and US$115 million in equity consideration in CannCure.
MCP is the Merida Capital Partners affiliate that owns the rights to personal 3 Michigan cultivation licenses, a processing license, nine licensed and operating provisioning centers (dispensaries), and six more dispensary licenses, providing it the biggest retail footprint in the state of Michigan.
Each MCP and the enterprise have recognized that present market place circumstances do not help a transaction of this size, and each parties and their respective shareholders are far better served focusing capital and sources on constructing out their respective firms. SOL Worldwide will stay focused on the scale up of its swiftly expanding Florida operations through One particular Plant Florida, and MCP will concentrate on opening more dispensaries and launching a cultivation facility in Michigan.
Collectively, SOL Worldwide and MCP have determined that even though they are terminating their LOI to merge due to ongoing market place circumstances, they will continue to perform with each other towards finalizing a strategic licensing agreement whereby MCP Wellness would engage Northern Emeralds to offer cultivation and processing common operating procedures to MCP for a to be agreed upon royalty (topic to the receipt of all regulatory approvals). As MCP Wellness builds its cultivation footprint to go with its nine operating dispensaries, a strategic agreement with Northern Emeralds to introduce the highest high-quality flower achievable will be instrumental in establishing it as 1 of the biggest vertically integrated operations in Michigan.
As aspect of the amicable termination, the $12.five million sophisticated by SOL Worldwide and its wholly owned subsidiary CannCure to MCP Wellness will be repaid in complete more than the subsequent 12 months in month-to-month installments and two balloon payments at the six- and 12-month time frames. Even though the promissory note is outstanding, CannCure will have the alternative to obtain specific assets from MCP Wellness, convert any amounts due into stock in the Michigan operator, or full the initially contemplated transaction on substantially equivalent terms. Any transactions contemplated herein are topic to regulatory approval.
The enterprise wishes to announce that the board of directors have resolved to alter the company’s fiscal year-finish from March 31 to Nov. 30, powerful instantly. By moving the company’s reporting cycle to a non-calendar quarter basis, the enterprise aims to cut down the time constraints and administrative expenditures connected with getting the similar calendar quarterly reporting cycle as most other reporting issuers and to align its monetary year-finish with other connected corporations. The notice for the year-finish alter necessary beneath National Instrument 51-102 has been filed beneath the company’s profile on www.sedar.com.
As a outcome, the enterprise will report audited monetary final results for an eight-month transitional fiscal year from April 1, 2019 to Nov. 30, 2019 with a comparative of twelve-month audited monetary statements from April 1, 2018 to March 31, 2019. Afterwards, the enterprise will revert to a customary quarterly reporting calendar primarily based on a Nov. 30 year-finish, with fiscal quarters ending on the final day in February, May perhaps, August and November each and every year. The alter in the company’s monetary year finish is topic to approval by the Canada Income Agency.