Mesa Exploration Corp. said Feb. 14 that it signed a nonbinding letter of intent to acquire Canadian medical marijuana company THOR Pharma Inc. in an all-share deal valued at C$20 million.
The company has been considering a switch to the medical marijuana business since late 2017 when it agreed to acquire JP Mariwell Inc. The deal, however, was terminated earlier in the month.
Under the terms, Mesa would issue 400 million shares, priced at 5 Canadian cents apiece, in exchange for the entire share capital of THOR.
Mesa plans to voluntarily delist from the TSX Venture Exchange and apply to list on the Canadian Securities Exchange before the transaction is completed. It may also move to spin out its existing mineral and royalty assets into a wholly owned subsidiary.
The parties intend to raise up to C$2 million in a private placement to fund the costs related to the acquisition as well as for working capital and general corporate purposes.
The transaction is expected to close by April 15.