Wayland Group (CSE: WAYL) announced late this evening that it has signed a non-binding letter of intent to sell off its Canadian assets to that of cryptocurrency miner Cryptologic Corp (CSE: CRY). The two parties have reportedly entered a binding exclusivity period which expires September 15, 2019.
The transaction is to consist of Wayland Group’s Canadian assets, including its Langton, Ontario cultivation facility that is currently licensed by Health Canada. In exchange, shareholders are expected to receive shares in Cryptologic at a deemed price of $4.00 per share, with 57,700,000 shares expected to be issued in exchange for the assets. The designated purchase price values Wayland’s Canadian assets at roughly $230 million, however Cryptologic shares closed Friday’s session at $2.30, down 8% on the day.
Cryptologic, as a part of the transaction, is expected to dispose of its cryptocurrency related assets to become a single-purpose cannabis company. As part of the transaction they are to assume all liabilities in relation to Wayland’s Canadian assets.
Additionally, Wayland Group announced that it is currently negotiating with International Cannabis Corp (CSE: WRLD.u) to potentially evolve the previously agreed upon transaction related to Wayland’s international assets. The potentially renegotiated contract would see all of Wayland’s international assets sold to International Cannabis Corp.
It is expected that upon closing, shares in both International Cannabis Corp and Cryptologic will be distributed to current Wayland Group shareholders.
As a part of the sale of assets, Ben Ward will be stepping down from Wayland Group and the Canadian cannabis assets. In his place will be Jordan Greenberg, who is the current Chief Financial Officer of Cryptologic, while Matthew McLeod will be taking on the role of President. Greenberg previously served as the CFO of Nuuvera, prior to it being acquired by Aphria in 2018.
It is unclear what will remain of Wayland Group following the proposed transaction at this point in time. The issuer has been halted since May 7, 2019 as a result of an IIROC issued cease trade order.
Information for this analysis was found via Sedar and Wayland 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.
