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Amending Agreements to Restructure Certain Debt Obligations Now Effective
MONTRÉAL, Aug. 30, 2022 /CNW/ – Canada House Cannabis Group (CSE:CHV) (“Canada House” or the “Company“), a fully integrated medical cannabis company, and Montréal Cannabis Médical Inc. (“MTL Cannabis“), a Montreal based “flower-first” Licensed Producer, today announced the closing of the first tranche of Canada House’s previously announced acquisition of all of the issued and outstanding shares of MTL Cannabis (the “Transaction“) (see the press releases of the Company dated August 9, 2021 and July 26, 2022).
With the closing of the first tranche of the Transaction (the “Initial Closing“) the Company acquired approximately 24.99% of the issued and outstanding shares of MTL Cannabis in exchange for 49.99% of the issued and outstanding common shares (“Common Shares“) of the Company. Following the completion of the Company’s share consolidation announced on August 25, 2022the shareholders of MTL Cannabis were issued 22,779,340 Common Shares on the Initial Closing. There are now 45,567,767 Common Shares issued and outstanding.
Now that the Initial Closing has been completed, the parties will proceed to satisfy the closing conditions to the second tranche of the Transaction, namely the preparation of the required audited annual and unaudited interim financial statements and related management’s discussion and analysis of MTL Cannabis in order for the Company to proceed to a shareholder meeting to approve the Transaction, as required by the rules and policies of the Canadian Securities Exchange (the “CSE“). The definitive transaction agreement between the parties provides for the Company to acquire the remaining 75.01% of the issued and outstanding shares of MTL Cannabis on the second tranche of the Transaction (the “Subsequent Closing“) in exchange for such number of Common Shares that when added to the Common Shares issued on the Initial Closing, is equal to 80.0% of the issued and outstanding common shares (“Common Shares“) of the Company.
The percentages of Common Shares noted above will be subject to anti-dilution adjustments in favour of the vendors of the MTL Cannabis shares wherein additional …
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