Perth, May 25, 2015 - (ABN Newswire) - PhytoTech Medical Limited (ASX:PYL) (“PhytoTech” or the “Company”) is pleased to provide an update on the proposed merger with MMJ Bioscience Inc (“MMJ”).
Merger Update - Completion of Due Diligence
- Successful completion of mutual due diligence process
- Merger of PhytoTech and MMJ on track and expected to complete on or around 2 July 2015
- CDN$1 million advanced to MMJ under a secured loan agreement to fund MMJ’s working capital requirements, with PhytoTech also agreeing to increase this loan amount by a further CDN$350,000
- Members of the MMJ management team to be appointed to the Board post merger - further strengthening the management team
- Shareholder approval expected 29 June 2015
- Completion of merger positions PhytoTech as a fully integrated medical cannabis company
As announced on 24 March 2015, PhytoTech will, subject to conditions precedent, acquire 100% of the issued capital of MMJ, a Canadian based multinational medical cannabis company, with MC growing facilities in Canada and R&D operations in the Canadian and European markets.
The Company advises that the mutual due diligence of PhytoTech and MMJ has been successfully completed and the Company has advanced CDN$1 million to MMJ under a secured loan agreement to fund working capital requirements of MMJ and has also agreed to increase this loan amount by a further CDN$350,000.
Both companies are satisfied with the due diligence and the merger will position the business as a leading, fully integrated, Medical Grade Cannabis (MGC) company.
The only substantive outstanding condition precedent to completion of the acquisition is approval from PhytoTech’s shareholders, which is due to occur at a general meeting to be held on 29 June 2015.
Upon completion of the merger, up to three nominees of MMJ will be appointed to the PhytoTech board of directors, subject to shareholder approval. The nominees of MMJ are currently intended to be Andreas Gedeon, Ross McKay and Jason Bednar. The Company will also seek shareholder approval to change its name to “MMJ PhytoTech Limited” to equally represent both PhytoTech and MMJ upon completion of the merger.
Boaz Wachtel, Managing Director of PhytoTech Medical Limited commented:
“The board is encouraged by the successful completion of the due diligence period. Early indications following the due diligence process are very positive and we look forward to providing further updates on the merger and the combined businesses operations going forward.”
A Notice of General meeting seeking approval for the transaction will be dispatched shortly, with the meeting to be held on 29 June 2015.
WEB: PYL-MMJ Merger Update
About: PhytoTech Medical Limited
PhytoTech Medical (ASX:PYL) is a medical cannabis company, which aims to commercialize Medical Grade Cannabis (MGC) and high potential cannabis based therapeutics products to the rapidly growing international market with regulated medical cannabis legislation. With research facilities located in Israel, a global leader in medical cannabis research, the Company is strategically positioned to become a key player in the global MGC market. The Company is focused on the research, development and commercialization of products for administering MGC, and on new treatments utilizing MGC therapeutic components for various medical conditions. In addition, the Company aims to grow proprietary strains of MGC in California, Uruguay and other jurisdictions.
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