MMJ PhytoTech Limited (ASX: MMJ) ("MMJ") is pleased to announce that Cannabis Wheaton Income Corp (TSX-V: CBW) (“Cannabis Wheaton”) has completed the acquisition (“Acquisition”) of Dosecann Inc. (“Dosecann”). The Acquisition proposal was announced by MMJ on 5 April 2018.
Prior to the Acquisition, MMJ held:
• a CAD$2.5 million convertible note (“Convertible Note”); and
• warrants providing the ability for MMJ to acquire a further 1.25 million Dosecann common shares at CAD$1.20 per common share (“Warrants”).
As consideration for the Acquisition:
• MMJ’s Convertible Note was converted into 3.12 million common shares in Cannabis Wheaton; and
• MMJ’s Warrants were converted into warrants in Cannabis Wheaton providing the ability for MMJ to acquire a further 1.56 million Cannabis Wheaton common shares at CAD$0.962 per share up until January 2020.
This consideration is currently worth a total of CAD$5.9 million based on Cannabis Wheaton’s share price of CAD$1.59 (as at 17 May 2018) and represents an unrealised multiple on invested capital of 2.4x to MMJ’s shareholders.
Investor and Media Enquiries:
Jason Conroy
Chief Executive Officer
[email protected]
Nice work guys. Hard to fault those numbers.
