MYM Nutraceuticals Signs Letter of Intent To Acquire Crop Infrastructure Corp

MYM Nutraceuticals (CSE: MYM) this morning announced that it has signed a letter of intent to acquire Crop Infrastructure Corp (CSE: CROP). The transaction is set to be an all share transaction with Crop Corp shareholders receiving one share of MYM for every 10.5 shares held of Crop.

MYM Nutraceuticals Logo

Little was provided in terms of transactional details, with no timeline for the close of the proposed transaction provided. MYM identified however that it intends to conduct an extensive restructuring plan for Crop Corp, who has had notable funding and execution issues as of late. The firm recently lost the majority of its Nevada hemp crop due to weed infestations, and a herd of antelope that made the field home.

That Nevada property also included a harvest that MYM and Crop had conducted a joint venture on. The resulting loss forced Crop to issue a guarantee that MYM would receive its initial funding back at a minimum. If this wasn’t enough, Crop Corp is also currently in default on its Nevada THC Property as well as secured debt, of which the status is currently unclear.

While Crop Corp has sizable investments in associates, the manner of ownership results in the firm having no revenues to record as of yet. Its currently in the process of calling certain debts owed by associates as a means of satisfying certain debts.

MYM’s team has proven to be extremely knowledgeable and reliable in helping Crop realign our strategy. They are extremely talented and well capitalized. We believe that this transaction is in the best interest of our shareholders.

Michael Yorke, CEO of Crop

The announcement of the proposed acquisition is stated to be one of the first opportunities that a pivoted MYM will conduct. The firm concurrently announced that it is pivoting its business strategy to provide “integrated strategic, financial, management, operational and marketing services to cannabis entities that have valuable assets but require management support and capital to navigate today’s challenging landscape.”

The letter of intent is non-binding. If executed, it will result in Crop Corp shareholders receiving an estimated 19,073,874 shares of MYM Nutraceuticals based on data provided by the CSE.

Based on MYM Nutraceuticals’ closing price yesterday of $0.245, the transaction values Crop Infrastructure Corp shares at approximately $0.0233 per share.

Information for this briefing was found via Sedar, MYM Nutraceuticals and Crop Infrastructure Corp. 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.