NewLeaf Brands Inc. (OTCMKTS:NLBIF) Offers Clarification Regarding The Definitive Agreement Signed To Acquire Mydecine Group

NewLeaf Brands Inc. (OTCMKTS:NLBIF) Offers Clarification Regarding The Definitive Agreement Signed To Acquire Mydecine Group

NewLeaf Brands Inc. (OTCMKTS:NLBIF) has given a clarification regarding its definitive agreement terms for the acquisition of Mydecine Group. NewLeaf announced on April 30, 2020, plans to acquire Colorado-based Mydecine.

NewLeaf Brands acquires 100% interest in Mydecine in exchange of 17 million shares

Mydecine utilizes a wide range of health, medicinal, and wellness capabilities of various compounds found in different varieties of fungi and mushrooms. The company owns three divisions “Mydecine Wellness,” “Mydecine Labs,” and “Mydecine Farms.” The company aims to become a pioneer in the industry. It is growing, processing, R&D, and product development to leverage the benefits of various compounds found in different fungi and mushroom strains.

NewLeaf Brands entered a definitive acquisition agreement for 100% of Mydecine’s outstanding and issued share capital. According to the of the agreement, NewLeaf is expected to acquire 100% interest in Mydecine in a share transaction in which it will issues 17 million common shares to Mydecine at $0.071 per share in total representing 30.9% of the company’s outstanding and issued shares on partially and a non-diluted basis for proceeds of around CA$1.207 million.

Interestingly the transaction will not involve a change in control. NewLeaf paid 1.36 million in finder’s fee at $0.071 per share in connection to the finalization of the acquisition.

3063625 Nova Scotia acquires 11.5 million shares in NewLeaf Brands For investment

In relation and as part of the acquisition of, Halifax’s 3063625 Nova Scotia Ltd will acquire around 11.5 million common shares of NewLeaf Brands at an estimated value of $0.071 for each common share, representing in the total around 20.9% of the company’s outstanding and issued common shares on partially and non-diluted basis.

Before the acquisition, Nova Scotia did not exercise control or beneficially own any of NewLeaf Brand’s securities. However, it now seems that 3063625 Nova Scotia is acquiring the securities for purposes of investment. It is expected that Nova Scotia will periodically acquire more securities of NewLeaf Brands or dispose of the securities from time to time, as it may consider appropriate.

Published at Thu, 28 May 2020 12:05:47 +0000

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