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Marapharm Ventures Inc. Closes Acquisition of Full Spectrum Medicinal Inc. & Announces Debenture Financing
Canada NewsWire
KELOWNA, BC, Sept. 26, 2018
KELOWNA, BC, Sept. 26, 2018 /CNW/ - Marapharm Ventures Inc. (CSE: MDM) (OTCQX: MRPHF) (FSE: 2M0) ("Marapharm" or the "Company") is very pleased to announce, further to its news releases dated June 25 and August 21, 2018, the Company has completed its due diligence and has completed the acquisition (the "Acquisition") of all outstanding securities of Full Spectrum Medicinal Inc. ("FSM").
10 fully-funded 10,000 sq. ft. engineered bio-secure facilities, will be constructed in two phases, maximizing our potential of a 100,000 sq. ft. ACMPR licence, once approved by Health Canada.
FSM's organic cultivation methods, stand-alone proprietary technologies and supplemental power are intended to reduce our carbon footprint, cost of production and improve profitability. We will benefit by setting new industry standards for cultivating premium cannabis products on a commercial scale.
Ground preparation is now complete and delivery of our first facility is on schedule.
The Acquisition
On September 25, 2018, the Company signed the Definitive Agreement and has completed the Acquisition pursuant to a share exchange agreement made effective as of September 25, 2018 (the "Acquisition Agreement") among the Company, FSM and the shareholders of FSM (the "Selling Shareholders"), whereby the Company issued a total of 88,182,102 common shares of the Company, at a deemed price of $0.31 per share to the Selling Shareholders in exchange for all of the outstanding common shares of FSM. These shares are subject to an eighteen (18) month release schedule with twenty-five (25%) percent released on closing and twenty-five (25%) percent released every six (6) months thereafter. Following the completion of the Acquisition, FSM is now a wholly-owned subsidiary of the Company. As part of the Acquisition, the Company issued 9,945,000 common share purchase warrants with an exercise price of $0.20c in exchange for cancelled FSM common share purchase warrants.
A finder's fee in connection with the Acquisition was paid to a group of finders in the amount of 4,513,944 common shares on the Company at a deemed price of $0.205 per share.
The Acquisition Agreement supersedes the operating agreement with FSM as previously disclosed in the Company's August 21, 2018 news release.