MJardin Group Inc (CSE: MJAR) this evening announced that it has terminated its previously announced acquisition of Carson City, Nevada based Cannabella. The now terminated transaction was initially announced a year ago in April 2019.
Under the terms of the original definitive agreement, MJardin Group was to close the acquisition in the third quarter of 2019, with the assets being used to provide extraction capabilities for the firm within the state. Further, the acquisition was to bolster locations in which the company sold its products, with Cannabella having distribution to 50 out of 60 retailers at the time of announcement.
Then, in October 2019 the company announced that a total of 741,765 common shares had been issued to the vendors as a portion of the non-refundable payment for the company. The company also revealed that it would be paying a total purchase price of US$4.5 million for the extractor, of which $0.5 million had already been paid. The remaining balance was to be paid in the form of common shares.
Given the delay in transferring associated licenses, MJardin has now elected to cancel the transaction, however details were not provided related to settling funds. Instead, the company simply said its “in discussions” regarding the details of settlement.
MJardin Group last traded at $0.09 on the CSE.
Information for this briefing was found via Sedar and MJardin Group. 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.
