Sunniva (CSE: SNN) (OTCQX: SNNVF), a vertically integrated
cannabis company, this morning announced that it plans to spin out its Canadian
assets into a separate Canadian entity and to apply to list the shares on the
Toronto Stock Exchange (“TSX”) and the NASDAQ Stock Market (“NASDAQ”). Per the
update, the purpose of the transaction is to attain the underlying value of
Sunniva’s assets on both sides of the border. Upon completion of the spinout
transaction, which is subject to various conditions such as shareholder and
exchange approval, Canadian assets would include Sunniva Medical Inc. (“SMI”),
which is currently building the Sunniva Canada Campus in British Columbia.
Shareholders will receive an information circular regarding the proposed
spinout which will include information on the management, board of directors,
financial statements and business plans of each of the entities. A meeting of
the shareholders of Sunniva will be required. Existing Sunniva shareholders at
the record date of the meeting will obtain a proportionate number of shares in
the new entity and continue to hold a proportionate number of shares in the
current CSE listed entity. Sunniva has retained Canaccord Genuity Corp. to act
as a financial advisor in connection with the transaction and other strategic
initiatives.
“We feel Sunniva is undervalued and through the Spinoff
Transaction we hope to unlock significant value for our existing shareholders.
Creating a new Canadian company with our Canadian assets and listing them on
the TSX and NASDAQ would be expected to bring added visibility and additional
analyst coverage to our story and has the potential to attract institutional
investors that are currently unable to purchase stock on the CSE or purchase
companies holding US assets,” Dr. Holler, CEO of Sunniva stated in the news
release. “Our CSE listed entity, Sunniva Inc., will continue to focus on full
vertical integration in California and other states with a focus on potential
mergers and acquisitions or partnerships, further expansion of licensed retail
outlets, and the near term launching of Sunniva branded products. Our initial
flagship 325,000 square foot purpose-built cGMP designed Sunniva California
Campus in Cathedral City which includes our flagship Sunniva onsite dispensary
is anticipated to be operational in Q4 2018 and our extraction facility
commenced operations in June 2018.”
To view the full press release, visit http://ibn.fm/12Sc1
About Sunniva Inc.
Sunniva, through its subsidiaries, is a vertically
integrated cannabis company operating in the world’s two largest cannabis
markets – Canada and California – where we are committed to delivering safe,
high-quality products and services at scale and creating trusted Sunniva
branded cannabis products. Our vision is to become one of
the lowest cost, highest quality vertically
integrated cannabis producers in the markets we serve by building large
scale purpose-built current cGMP designed greenhouses
and further expansion of retail locations, offering
better quality assurance with cannabis products free from pesticides, providing
better customer access to cannabis education and sourcing better
therapeutic delivery devices. Sunniva’s management and board of
directors have a proven track record for creating significant shareholder value
both in the healthcare and biotech industries. For more information, visit
the company’s website at www.Sunniva.com.
About MissionIRNewsBreaks
MissionIRNewsBreaks provide
a rapid summary of corporate news that catch the attention of MissionIR. MissionIRNewsBreaks are created by
our Team of professional journalists that keep a constant eye on the markets,
these posts are designed to inform you on the latest happenings of our clients
and other publicly traded companies on our radar. From earnings, acquisitions
and agreements to conference attendance and clinical study results, our news
breaks keep you up-to-date with the day’s top movers. MissionIR is primarily
focused on strategic communications. We have executed countless communications
programs to address the needs of companies ranging from start-ups to
established industry leaders, gaining valuable experience and the expertise
necessary to determine the most effective strategy for any given situation.
Please see full terms of use and disclaimers on the Mission
Investor Relations website applicable to all content provided by MIR, wherever
published or re-published: http://www.missionir.com/disclaimer.html
