Tidal Royalty Corp (CSE:RLTY), financier to the growing cannabis industry, announced Thursday that MichiCann Medical Inc (operating as Red White & Bloom) has signed a letter of intent to acquire the world’s largest indoor premium hemp facility, located in Granville, Illinois.
Tidal Royalty recently signed a definitive agreement to merge with private cannabis firm MichiCann Medical Inc with an aim to create a major US multi-state operator.
Under the agreement, all of the issued and outstanding common shares of MichiCann will be exchanged on the basis of 2.08 common shares of Tidal for each one MichiCann common share, subject to adjustment as set out in the definitive agreement.
MichiCann is a private cannabis investment company based in Vaughan, Ontario, with an experienced management team in the industry, including CEO Brad Rogers, who was a founder of Mettrum Health Corp before its sale to Canopy Growth Corp (NYSE:CGC).
After the transaction is completed, existing MichiCann and Tidal shareholders will own approximately 80% and 20% of the resulting company, respectively, on a fully diluted basis.
Anchored by its Illinois facility, MichiCann intends to establish large-scale production capabilities focused on hemp extraction and product manufacturing in the US. Management's experience in Canada will allow it to establish the Illinois facility as a "bellwether for standardization of premium hemp CBD, and CBD-derived medicines and products," noted the firm in a statement.
“Strategically located proximal to Chicago, the 3rd largest city in the United States after New York and Los Angeles, and with the state rapidly pushing towards recreational cannabis, this facility will service with tremendous economies of scale both in production and logistics, one of the largest and most important consumer markets in the United States,” said Brendan Purdy, interim CEO of Tidal in a statement.
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