Scythian Biosciences Closes Acquisition of MMJ Colombia Partners
Closing of Colombia Acquisition is Key Benchmark in Finalization of Previously Announced $193 Million Sale of Assets in Latin America, Which As Of Friday’s Close Was Valued At More than $219 Million
TORONTO, Aug. 27, 2018 — Scythian Biosciences Corp. (the “Company” or “Scythian”) (CSE:SCYB) (Frankfurt:9SB) (OTC – Nasdaq Intl: SCCYF) has completed its acquisition of MMJ Colombia Partners Inc. (“MMJ Colombia”), a privately-held Ontario company that owns 90% of Colcanna SAS, a company that cultivates, imports, extracts and produces Tetrahydrocannabinol (“THC”) and cannabidiol (“CBD”) in Colombia (the “Acquisition”).
Pursuant to the terms of the Acquisition, Scythian purchased all of the issued and outstanding common shares of MMJ Colombia and in consideration, Scythian:
- paid US$6,200,000 in cash, which was advanced to MMJ Colombia prior to closing;
- issued 6,679,310 common shares of the Company (“Common Shares”) to the selling shareholders at a deemed issue price of CDN $3.6381 per share, representing the volume weighted average price of the Common Shares for the 20 trading days prior to the closing date; and
- assumed an aggregate of US$5,000,000 of MMJ Colombia’s non-interest bearing, unsecured debt, of which US$4,000,000 is due on October 15, 2018 and US$1,000,000 is due on December 31, 2018.
The acquisition is one of Scythian’s final transactions in South America and the Caribbean, where the Company’s strategic investments and regional partnerships had previously been focused.
With the purchase of MMJ Colombia, Scythian has completed its first step from its exit from South America, which began when it announced this past July that it was selling its assets in the region for $193 million.
On August 23rd, Scythian said that its new focus will be to build out a footprint across multiple U.S. states.
The Company intends to change its name to SOL Investments Corp. subject to shareholder approval at its upcoming special meeting of shareholders scheduled for September 14, 2018.
About Scythian Biosciences Corp.
Scythian is an international cannabis company with a focus on legal U.S. states. Its strategic investments and partnerships across cultivation, distribution and retail complement the company’s R&D program with the University of Miami. It is this comprehensive approach that is positioning Scythian as a future frontrunner in the United States’ medical cannabis industry.
Scythian Biosciences Corp.
Rob Reid, CEO
Phone: (212) 729-9208
For media inquiries, please contact:
David Schull or Nic Johnson
This press release contains certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation, statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Such forward-looking information includes information relating to the Company’s strategic plans and change of name.
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