It appears the divestment of Meta Growth’s (TSXV: META) non-core assets won’t be proceeding as previously stated. The company issued a late night news release last night, identifying that the transaction with Evergreen Pacific Insurance Corporation had fallen through and would be terminated effective immediately.
Originally, Meta Growth was to sell its medical cannabis clinics to the firm in a $4 million all-cash transaction, which was announced at the same time as the company’s formal name change from that of National Access Cannabis. The sale was pushed as a divestment of non-core assets, given that the company desires to focus entirely on its recreational cannabis retailers. At the time, CEO Mark Goliger stated, “As the cannabis industry has evolved, our focus has shifted from medicinal to recreational cannabis, and today, retail is our portfolio and our future.”
The company remains committed to the divestment of its medical cannabis division however, with Goliger indicating in last nights release that they are still looking for a transaction that best suits its employees, clients and shareholders.
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A reason for the termination of the previous sales agreement was not provided. The divestment was to originally close by November 30, 2019.
Meta Growth last traded at $0.30 on the TSX Venture.
Information for this briefing was found via Sedar and Meta Growth. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
