BREAKING NEWS THC firms up deal to acquire 51% of Aust. pot importer
2018-04-24 18:52 ET - News Release
Mr. John Miller reports
THC ENTERS INTO DEFINITIVE AGREEMENT TO ACQUIRE 51% OF BURLEIGH HEADS CANNABIS OF AUSTRALIA
THC Biomed Intl Ltd. has executed a definitive agreement, further to entering into a letter of intent previously announced April 4, 2018, with Burleigh Heads Cannabis Pty. Ltd., an Australian licensed importer and wholesaler of medical cannabis (BHC), and its shareholders for the acquisition of 51 per cent of that company. Upon completion, THC will become the majority shareholder and parent company of BHC and will also have the right to appoint two out of three directors to the Board of the target company. While it is the intention that BHC will list as a public company in Australia, there are no assurances that the target company will ever apply to or become a public company.
In exchange the shareholders of BHC will receive AUD $750,000 for 51% of the issued and outstanding shares of the company. The Agreement also provides that THC will invest AUD $1,088,357 into BHC for the operation of its business plan within the first year and the repayment of AUD $88,357 in existing shareholder loans.
THC's investment of AUD $1,088,357 into BHC will take the form of an investment into shares at $0.20 per share (the "Investment Shares"), for a total of 5,441,785 Investment Shares. The Investment shares will be non-voting, non-participating and non-dividend shares while BHC is a private company but the Investment shares will convert into regular common shares in the event that BHC goes public in Australia.
THC also entered into a shareholders agreement that will govern certain aspects of the issuance of BHC shares and other matters while BHC remains a private company or the shareholders agree to terminate the shareholders agreement.
There are no assurances that the Share Acquisition will be completed.
"This acquisition represents an important step in THC's international expansion strategy," said John Miller, CEO & President of THC,"BHC has the access and licenses needed for us to gain entry into the Australian medical cannabis market."
About Burleigh Heads Cannabis Pty Ltd.
BHC is a private, Australian, government-approved supplier of medical cannabis. It holds licenses to import medical marihuana into Australia and to sell it to approved purchasers within Australia. It was incorporated on November 14, 2016 and is located in Queensland.
About THC
THC is an ACMPR Licensed Producer and Canada's largest supplier of legal Cannabis Genetics. THC also produces and sells dried and fresh marijuana and cannabis oil for medical purposes. THC is on the leading edge of scientific research and the development of products and services related to the medical cannabis industry. Management believes THC is well-positioned to be in the forefront of this rapidly growing industry.
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