The last two weeks since marijuana was legalized in this country have been eventful ones, with a storm of activity involving companies anxious to get their product to market. Merger and acquisition activity has also been prevalent, with Vancouver-based Organto Foods Inc. (TSX-Venture:OGO) striking an agreement to acquire Colombia-based Medicannabis S.A.S., a late stage applicant for licenses to enable it to cultivate and process cannabis in Colombia.
The transaction would proceed in two stages. In the first stage, Organto acquires the shares of Medicannabis and undertakes the final stages of the licensing process, a process that should conclude midway through next week. In the second stage, Organto is to issue up to 8,000,000 shares to the original shareholders of Medicannabis upon receipt of a cultivation license.
Organto CEO Steve Bromley says, “While organic fruits and vegetables will continue to be the mainstay of our business, we believe the addition of a self-standing cannabis division will ultimately lead to increased profitability and value creation for our shareholders."
OGO was positive two cents, or 15.4%, as morning became afternoon Thursday, to 15, on volume of 152,500 shares.
