Biome Grow Inc (CSE:BIO) (OTCMKTS:BIOIF) revealed on Tuesday that it had closed the previously announced C$12.9 million sale of its Highland Grow Inc cannabis subsidiary to licensed producer MYM Nutraceuticals Inc.
Highland Grow is licensed to cultivate, process, and distribute cannabis from its facility in Antigonish, Nova Scotia.
READ: Biome Grow to sell cannabis subsidiary Highland Grow to MYM Nutraceuticals in C$12.9 million deal
On closing, MYM paid Biome C$1.5 million in cash, and issued the company more than 42.8 million shares, or 19% of its share capital, making Biome MYM'S largest shareholder.
It also issued Biome with over 132 million Class A Special Shares which are exchangeable into MYM common shares, representing a further 30% of the issued and outstanding MYM shares.
"This transaction will give Biome shareholders exposure to a combined operating platform that has a licensed internal cultivation capacity that is approximately 4X larger than that of Highland Grow Inc’s. The larger combined footprint also allows for greater processing capacity without the need for significant capital expenditure,” said Khurram Malik, CEO of Biome Grow Inc, in a statement.
Robin Linden, interim CEO of MYM Nutraceuticals, said last week: "We are extremely excited to welcome Highland Grow to the MYM family.
"The Highland Grow cultivation and distribution facility in Nova Scotia will expand MYM’s cannabis footprint, enabling us to immediately supply the Canadian market with premium craft cannabis, including product grown in our Quebec-based facility."
Contact the author at giles@proactiveinvestors.com
