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CROP Infrastructure set to be bought by MYM Nutraceuticals

Crop has inked a non-binding letter of intent, which states the pair will negotiate a definitive agreement on the deal on or before November 15

Crop Infrastructure Corp. -
CROP boss Michael Yorke said MYM's talented and well capitalized team has proven extremely knowledgeable and reliable in helping CROP to realign its strategy

CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF) is set to be bought by MYM Nutraceuticals Inc (CNSX:MYM) via a plan of arrangement, the cannabis focused group said Thursday. 

Crop has inked a non-binding letter of intent, which states the pair will negotiate a definitive agreement on the deal on or before November 15 this year. Crop would become a wholly-owned subsidiary.

READ: CROP Infrastructure prepares for October harvest despite crop loses in Nevada

Among Crop's assets are medical and recreational facilities in California, a 1,012-acre Nevada Cannabis farm, a 500-acre Hemp CBD farm and a growing portfolio of cannabis company shares.

"As a result of a significant crop loss in September, the company is not in a position to service its outstanding liabilities and the debt financings associated to maintaining the company's assets," said Michael Yorke, the CEO at CROP.

He added that MYM's talented and well capitalized team has proven extremely knowledgeable and reliable in helping CROP to realign its strategy.

"CROP was structured to play a passive role in its joint ventures and MYM has an operating team in place to oversee the assets assembled by CROP and the capital to service its debt and get things back on track. We believe that this transaction is in the best interest of our shareholders."

Complex and demanding

Howard Steinberg, CEO of MYM, added: "The capital markets in the cannabis industry have become complex and demanding. We are looking to acquire companies with valuable core assets that are poised to benefit from the restructuring expertise our team can bring, in terms of both capital and management support. We look forward to working closely with the Crop team as we develop a financial and operational plan to enable its assets to flourish in the future."

CROP currently has over 170.69 million shares on an undiluted basis and, as of August 31, 2019, MYM had over 148.3 million shares on an undiluted basis.

Under the terms, all these shares are to be exchanged for MYM Shares on the basis of around 0.0952 of an MYM share for each share, implying a consideration for each share of around $0.0229 per share or $0.24 per MYM Share, based on the closing price of the MYM shares on November 5 this year.

Contact the author at [email protected]

 

Quick facts: Crop Infrastructure Corp.

Price: 0.01 CAD

CSE:CROP
Market: CSE
Market Cap: $1.71 m
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