Last year, Hadley Mining (CSE: HM) said that it was paying $2.0 million to acquire a private company, simply called "SpeakEasy," that held an application for a license under Canada’s Access to Cannabis for Medical Purposes Regulations.
With the acquisition, Hadley was also buying SpeakEasy’s 12,000 square-foot facility located on 290 acres in the Agricultural Land Reserve in Rock Creek, British Columbia. The current facility has a production capacity of 1,100 kg and includes a security level nine vault.
Hadley said in a November release disclosing the completion of a private placement that generated gross proceedings of $11.27 million, that SpeakEasy had already passed the review stage of the licensing process and was awaiting the issuance of a license from Health Canada.
On Monday, Hadley announced that the acquisition is complete. As often happens, details got a little hairy with Hadley actually acquiring the license indirectly through the acquisition of 10161233 Canada Ltd. Hadley acquired 10161233 Canada via the issuance of 12.0 million in HM common stock. The license is still pending with Health Canada at this time.
The 290 acres and facility (incidentally now referred to as being 10,000 square feet) were purchased for $2.0 million in cash from a private entity formerly affiliated with the company. An 80,000-square-foot expansion on the property is underway that will bolster capacity to 10,000 kilograms annually and include growing, extraction and genetic facilities.
Upon the milestone of the license being awarded, an additional six million shares will be granted to SpeakEasy founder and president Marc Green, who will assume the position of chairman of the new Hadley, which will be renamed SpeakEasy Cannabis Club Ltd. Another one million shares will be given to Anthony Jackson, who will join the board of directors.
The name change is also being accompanied by a ticker change. SpeakEasy expects to start trading under the symbol "EASY" on the Canadian Securities Exchange on Wednesday, April 4.
Shares of HM closed the day flat at 95 cents.
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