OTCPK:CTTH - Post by User
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scissors14on May 18, 2017 1:34pm
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LOI for Strategic Financing
LOI for Strategic FinancingCTT Pharmaceutical Holdings, Inc. Enters in to a LOI for Strategic Financing CTTH | 1 day ago STONEY CREEK, ON / ACCESSWIRE / May 17, 2017 / CTT Pharmaceutical Holdings, Inc. (OTC PINK: CTTH) (the "Company") announced that it has executed a Letter of Intent ("LOI") with a Canadian investment group (hereinafter called the "Investment Group"), wherein the Company will sell certain assets to the Investment Group's newly incorporated well-capitalized Canadian company (the "Newco") in consideration for common shares of Newco (the "Shares"). Subject to US and Canadian securities laws, it is intended that the Shares will be dividend to the Company's shareholders contemporaneously with Newco's listing of its common shares on either the TSX Venture Exchange or the Canadian Stock Exchange. As the Assets represent all of the material assets of the Company, the Company will be seeking approval of the transaction by a majority of its shareholders by way of a consent resolution of shareholders. Dr. Pankaj Modi, President and CEO of the Company, stated, "We anticipate executing a definitive agreement with the Investment Group in the near future and look forward to sharing the complete details with our existing shareholders and potential investors. We believe that the proposed terms will be beneficial to our shareholders and the capital market and industry relationships the Investment Group will provide will be significant and will assist in our efforts to maximize value to our shareholders." Dr. Modi further noted, "In addition to providing the necessary capital infusion for the growth of our business, the Investment Group will be instrumental in assisting with the commercialization of our assets, namely, our Oral Thin Wafer through a company that will apply for a listing on an exchange in Canada. Canadian-listed companies involved in the cannabis industry are experiencing significantly higher valuations than US comparables, as a result of the National Medical Marijuana program in Canada initiated in 2013 and a Canadian Government mandate to legalize adult recreational use by July 1, 2018. Due to these progressive actions of the Canadian Government, there is a more receptive and educated investor base that we believe will lead to a significantly higher valuation and wider shareholder base. We look forward to benefitting strategically from the existing presence the Investment Group has both in the cannabis and pharmaceutical industries through licensing and joint venture opportunities worldwide." Upon an approved definitive agreement between the Company and the Investment Group, complete details will be provided and circulated to shareholders prior to seeking a consent resolution. About CTT Pharmaceutical Holdings, Inc. Read more at https://www.stockhouse.com/news/press-releases/2017/05/17/ctt-pharmaceutical-holdings-inc-enters-in-to-a-loi-for-strategic-financing#ICAfEDyOOp6jOF8T.99