CONTEMPLATED PLAN OF ARRANGEMENT (SPIN OUT) In addition, the Company advises that it is contemplating a corporate reorganization by way of a plan of arrangement (the “Arrangement”) to liberate the value of its functional mushroom-infused consumer packaged goods (the “CPG Business”) division. Under the terms of the Arrangement currently being contemplated, the Company’s CPG Business would be spun out as a separate publicly listed reporting issuer (“Newco”).
The Company plans to announce a record date in connection with the Arrangement in due course and anticipates the record date will occur within Q3 of 2020. It is expected that upon closing of the Arrangement, each shareholder of the Company will receive common shares of Newco based on the amount of Company shares held on the record date.
There is no assurance that the Arrangement or the Offering will proceed on the terms above or at all. The Arrangement and the Offering would be subject to customary approvals, including shareholder approval and regulatory approval, as applicable.