Upon achievement of the second milestone, a cash payment of C$800,000 became due and payable to the Mernova vendors.
Creso has today reached an agreement with the vendors to settle part of the debt in respect of the second milestone payment through the issuance of ~15 million shares at a deemed issue price of 5 cents per share.
Licensed Canadian producer
Mernova is ramping up cannabis production towards maximum capacity ahead of the launch of its premium retail products.
The licensed producer based in Nova Scotia, Canada, has been focusing on streamlining its operations to meet growing demand from medical and recreational markets in Canada after it received its sales licence from Health Canada in May.
These optimisation changes have streamlined production and delivered tangible improvements to cannabis quality, with increased yields expected over the coming months.
New substantial holder
L1 Capital has become a substantial holder with a 7.35% stake in Creso on June 23, 2020 after acquiring more than 25 million shares for its Global Opportunites Master Fund.
L1 Capital is an independent global investment manager owned by its staff. All members of the investment team are invested alongside clients.