Chlormet Technologies (
TSX-V:CMT,
StockForum), a former Vancouver-based acquisition and exploration firm recently turned toward the medical marijuana sector, announced today that the company had passively invested in a privately owned Ontario grower entity (“PrivCo”) to the amount of $120,000, gaining 16.5% equity interest in PrivCo.
According to the
news release, the company also signed a letter of intent with PrivCo, granting it the option of acquiring 100% ownership of PrivCo. The transaction is subject to certain conditions including the grant of a MMPR license to PrivCo.
Chlormet has agreed if conditions are met to issue a total of 16.0 million common shares to PrivCo pending TSX Venture Exchange escrow policies with funds possibly being advanced to PrivCo prior to transaction closure in order to facilitate the grant of an MMPR license.
The release went on to note that, “PrivCo currently owns a secure commercial facility and land located in Ontario and, since November 2013, has had an application pending with Health Canada for a new MMPR (Marihuana for Medical Purposes Regulations) license. PrivCo personnel includes an experienced grow master who is currently a 'designated grower' under current MMAR licensing. “
The company has commenced on-going due diligence with an independent economic analysis of the opportunities presented by PrivCo and the Canadian medical marijuana industry in general with the analysis expected to be complete by the end of March.
Chlormet was in the news recently when
the company closed a $0.66 million non-brokered offering at the end of February.
Shares dipped 9.38% on the news to $0.29 per share.
Currently there are 20.9m outstanding shares with a market cap of $6.0 million.