Viridium Pacific Group Ltd. plans to merge its unit 2163903 Alberta Ltd. with Canadian cannabis company EFX Laboratories Inc. by acquiring all of its class A voting shares.
Under the terms of the deal, which is expected to close in February, Viridium will acquire the shares by issuing one of its shares for every 2.57 EFX shares. Following closure of the merger, EFX shareholders will possess about 49.41% of Viridium's shares, while the remaining 50.59% shares will be held by Viridium shareholders.
Calgary, Alberta-based EFX focuses on the research and development of medical cannabis applications and treatments. The company's drug portfolio includes formulations for pain control and value-added wellness products.
Trading of Viridium shares will be halted on the TSX Venture Exchange, pending receipt and review of related documentation by the exchange. The company also said it has withdrawn its proposed private placement, which was announced on Oct. 14, 2018.
Viridium's board will comprise of five existing directors and two EFX directors following the completion of the merger. Viridium's management team will remain unchanged. The completion of the merger is contingent upon approvals from EFX shareholders and certain regulatory bodies. The merger does not require approval from Viridium shareholders.
AnimusCapital Partners Inc. acted as exclusive financial adviser to Viridium for the transaction.
Mission, British Columbia-based Viridium operates as a consumer wellness and biotech innovation company in Canada.