Shares of MYM Nutraceuticals Inc. (CSE:MYM) surged on Wednesday after the Vancouver, BC based company announced that it entered into an exclusive agreement to acquire a 51% interest in Sublime Culture Inc., a company possessing an application—currently in its inspection stage (stage 4 of 5)—to become a Licensed Producer under Health Canada’s Access to Cannabis for Medical Purposes Regulations. MYM will supply funding and resources to build out Sublime’s medical marijuana facility in preparation for the inspection required to obtain a growing license. If Health Canada auditors are then satisfied with a successful crop, MYM will be granted its distribution license (stage 5, the final stage).
Pursuant to the agreement, MYM will issue 1,000,000 common shares to the principals of Sublime and raise at least $1,800,000 to fund the completion and initial operation of a licensed production facility. Once operation of the facility has commenced, the Company has agreed to issue options to purchase 200,000 MYM shares to the shareholders of Sublime, as well as an additional 200,000 MYM options every year thereafter that the facility remains in operation and MYM is materially involved in its operation and production.
This is a key acquisition for MYM Nutraceuticals and its shareholders, as it allows the Company an opportunity to become a Licensed Producer ahead of its own application being granted. In addition, it will give MYM the ability to design and operate an extraction and processing facility and thereby accelerate the launch of its innovative brand of cannabis-infused nutraceutical products. MYM also expects to be able to capitalize on Sublime’s expertise in the production of medicinal cannabis, as well as its connections in eastern Canada.
Jonathan Fiteni, CEO, commented: “The MYM team and I have worked very hard over the last two years, vetting assets and individuals in order to increase shareholder value and allow the company to start producing high-quality products. With this deal, we welcome aboard an experienced team from Sublime Culture Inc. We are thrilled for the opportunity to grow our brand with a group that shares our vision and passion for this industry.”
Thomas Lahache, Founder and President of Sublime Culture Inc., commented: “This is an incredible opportunity for me and my team to be able to work with a group who are as passionate as we are about this great emerging industry. It comes at a time when so many companies are being forced to close down before completing the ACMPR process. By joining forces with the MYM team, we are able to get the support we need to complete our facility for inspection and are looking forward to all of the exciting possibilities ahead.”
The completion of the transaction is subject to the approval of the Canadian Securities Exchange (the “Exchange”), the Company’s shareholders, and all other applicable approvals. There can be no assurance that the transaction will be completed as proposed.
ABOUT MYM
MYM Nutraceuticals Inc. (CSE:MYM) is a public company trading on the Canadian Stock Exchange whose primary focus is developing high-end organic medicinal marijuana supplements and topical products. MYM also has an interest in the development of high-density farming facilities and technologies that allow MYM to expand its brand into the global market.
MYM has identified the potential market in providing extraction and processing services to large and independent ACMPR farming operations looking to produce high quality plant extracts using top quality C02 extraction equipment and customized formulations. Further to this business model is the ability to provide these services on-site via mobile convoy.
ON BEHALF OF THE BOARD
“Jonathan Fiteni”
Jonathan Fiteni
CEO and Director
Telephone: 778-317-7932
Email: [email protected]
This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The company disclaims any intention or obligation to revise or update such statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedar.com.
This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither the Canadian Securities Exchange (CSE or CNSX Markets), nor its Regulation Services Provider (as that term is defined in policies of the CSE), accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.
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