MMJ PhytoTech Ltd too list onTSX-V via RTO

Zitat:"Perth, Australia (ABN Newswire) - MMJ PhytoTech Ltd (ASX:MMJ) ("MMJ" or "the Company") is pleased to advise that it is set to unlock significant value for shareholders through the spin out of its core cannabis subsidiaries, United Greeneries Holdings Ltd ("UG" or "United Greeneries") and Satipharm AG ("Satipharm"), on the TSX-V.

Highlights:

- Strategic spin out of Canadian subsidiary United Greeneries and Swiss subsidiary Satipharm by way of a reverse takeover of the TSX-V listed entity Top Strike Resources (TSX-V; TSR)

- TSX-V listing of core cannabis subsidiaries will provide MMJ shareholders with exposure to rapidly expanding Canadian cannabis market

- Top Strike to pay C$2.5M in cash and C$37.5M in shares to MMJ

- MMJ management to be responsible for operations of the resulting TSX-V listed company

- Direct market comparisons to Canadian peer companies expected to unlock significant near-term shareholder value

- Top Strike to become a large-scale cannabis producer targeting supply to the Canadian medical and recreational market, which is estimated to be an C$8b market by 2024

- Black Spruce Merchant Capital to act as lead manager for the transaction providing extensive relationships into Canadian capital markets

MMJ has signed a binding Term Sheet with TSX-V listed company Top Strike Resources Limited (TSX-V: TSR) ("Top Strike"), for Top Strike to acquire 100% of the issued shares of UG and Satipharm respectively.

MMJ PhytoTech (ASX: MMJ) has made another strategic investment in a Canadian pot company – this time, in Dosecann, which has a 45,000 square foot pharmaceutical production facility in the pipeline.

In addition to the facility, Dosecann plans to obtain licensed dealer status by May to import and export cannabis, as well as gain licensed producer status to take advantage of the incoming recreation use laws in July this year.

Under the agreement, MMJ will purchase C$2.5 million worth of secured convertible debenture units in Dosecann. The debentures are convertible into shares and warrants in Dosecann and have a pre-money valuation of C$11.5 million.

“We are very pleased to be presenting this latest investment opportunity, as we believe Dosecann’s experienced management team and aggressive expansion plans have the potential to create considerable value for our shareholders in the near-term,” MMJ managing director Andreas Gedeon stated.

Dosecann has scheduled the first stage which comprises 20,000sq ft of the planned 45,000sq ft pharmaceutical production facility for completion in June.

Once the GMP-compliant building has been completed, it will contain a level nine security vault, research and development and extraction lab, as well as filling, packaging and distribution capability including import and export capabilities.

Mr Gedeon said the acquisition was part of MMJ’s strategy to increase its exposure to Canada’s rapidly maturing Canadian cannabis sector.

“We believe this investment in Dosecann, coupled with our existing holding in Harvest One, is a significant step towards achieving this objective,” Mr Gedeon added.

Harvest One Cannabis