Ann: MMJ Core Cannabis Brands to List on TSX-V via RTO-MMJ.AX, page-48

I shall try explain this simply as I think it needs to be hashed out many times so that people see the value here.

- TSR is buying UG (United Greeneries and Satipharm) from MMJ for $40M ($2.5M in cash and $37.5M in shares in TSR (300M shares) that MMJ will own);
- TSR will raise capital of $15M (120M shares), from which, 2.5M will be paid to MMJ;
- Overall MMJ will own 69% of TSR and the rest will be owned by new investors who participate in the raising of the $15M and a small portion of 4% will remain with TSR (likely with management holding);
- TSR will have 436.4M shares fully diluted but will then be consolidated so that shares will be reduced to 72.7M with the same percentage of ownership;
- TSR will trade on TSX and of course if Canadian investors like the stock, there will be 27% of the equity held by the new investors of which some will be fairly liquid... but overall this will be a tightly held stock;
- Shares will likely be bid up on the TSX and the higher they go, the more value will be unlocked, and MMJ owning 69% will mean MMJ's assets will increase in value... pushing up MMJ share price.
- As TSR will have $12.5M in cash, they can spend money on:
- Lucky Lake progressing from security clearance stage of the licensing process to having this inspected and a license granted
- Satipharm clinical trials - phase 2
- Marketing UG and Satipharm products to the recreational market
- All the effort by TSR could result in improved revenue and in turn bid up the price of TSR and in turn MMJ.

Overall rather than doing a stale CR at 20c/share in Australia, MMJ have proven they've got good brains on board to realise more value for shareholders. Whilst we lose 31% in the value of UG/Satipharm... these assets have not realised full value by remaining assets of MMJ. Perhaps hesitation by the Australian market regarding MMJ due to the still young and immature market. The Canadian market is quite the opposite and the hope is that TSR will trade at multiples of it's current valuation once this deal is done.

All will be just in time for Xmas.

Good luck!