MYM Nutraceuticals (CSE: MYM) released a corporate update earlier this week, identifying that the company has nearly become a listed shell. The once aspiring cannabis entity has now terminated all non-essential staff, including its chief legal and scientific officers. The firm has also walked away from a number of previously entered projects that had promised high hopes for the firm.
MYM has maintained that it “continues to work diligently on its 2020 strategic plan,” however it has “re-defined” its focus to find “attractive anticipated levels of return” on projects that contain limited risk. As such, the firm is reviewing several potential merger or acquisition agreements however it was as vague as possible on details, citing that the businesses meet an undisclosed criteria on a “preliminary basis.”
As a result of having limited actual operations, the firm has eliminated all non-essential staff, and has entered into consulting arrangements with what management remains. All previous employment contracts have been terminated, and any compensation going forward has a reduced cash amount plus share consideration. Approximately $50,000 in shares is expected to be issued per month to pay management.
With regards to ongoing projects, the firm has conducted a massive reduction in operations. While the partially owned cannabis facility known as Sublime Culture has yet to receive its licenses from Health Canada, the firm has indicated that it has responded to all recent requests for information. This appears to essentially be MYM’s only semi-operational asset.
The International Brands portfolio has been eliminated, with original owner and former director and officer Erick Factor taking back all rights to the associated brands, including Joshua Tree, Dr. Furbaby, and Hempmed. In regards to Colombia Organic, MYM Nutraceuticals has decided not to proceed with the transaction after conducting due diligence. The firm has also terminated its relationship with the University of Sherbrooke.
Finally, MYM is still looking to offload its Weedon, Quebec facility. The office buildings have been listed for sale, and a write-down totaling $7.45 million will be forthcoming in the next financial results. Currently outstanding notes receivable of $1.3 million will also see $0.8 million worth move to doubtful accounts in the next set of financials.
MYM Nutraceuticals last traded at $0.095 on the CSE.
Information for this briefing was found via Sedar and MYM Nutraceuticals. 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.
