Mydecine Innovations Group Inc (OTC:MYCOF, FRA:0NFA, NEO:MYCO) said it will hold a special virtual meeting of its shareholders on September 20, 2021 at 11 am PT to approve the spin-out of its Alt House Cannabis Inc assets, currently referred to as Spinco, to the company’s existing shareholders.
As part of the transaction, Mydecine will transfer all of its interests in the company’s US cannabis subsidiaries into its wholly-owned Spinco subsidiary in exchange for 2.5 million common shares of Spinco.
Mydecine’s current shareholders will then receive these Spinco shares in proportion to their shareholdings in Mydecine, at an exchange rate of 0.010416 Spinco shares for each common share of Mydecine held.
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As well, holders of Mydecine warrants who exercise such warrants, following the transaction, shall receive for each warrant held one whole Mydecine common share and, for no additional consideration, 0.010416 Spinco shares.
Upon completion of the transaction, Mydecine’s principal business will focus on the development and commercialization of solutions for treating mental health problems through its psilocybin research and development and it will no longer be involved in the manufacturing or sale of cannabis and CBD products.
Mydecine noted the purpose of the transaction will be, among other things, to allow the company to pursue business and financing opportunities unavailable to it while it continues to hold an interest in the US cannabis subsidiaries, including its proposed listing on NASDAQ Capital Markets and the London Stock Exchange.
The transaction remains conditional on the approval of Mydecine shareholders, the Aequitas Neo Exchange, and final approval of the Supreme Court of British Columbia, and is expected to close on or about September 27, 2021.
Mydecine also said that following the transaction, Spinco is expected to be an unlisted public company.
It added that Spinco intends to apply to list its common shares on the Canadian Securities Exchange or the Aequitas Neo Exchange following completion of the arrangement, although there can be no assurances that such listing will be achieved.
Mydecine is an emerging biotech and life sciences company dedicated to developing and commercializing innovative solutions for treating mental health problems and enhancing vitality. The firm operates out of a state-of-the-art mycology lab in Denver to focus on genetic research for scaling commercial cultivation of rare (non-psychedelic) medicinal mushrooms, and has exclusive access to a full cGMP certified pharmaceutical manufacturing facility with the ability to import and export, cultivate, extract and isolate, and analyze active mushroom compounds with full government approval through Health Canada.
Contact Sean at sean@proactiveinvestors.com