Royal Sapphire Corp. said Aug. 4 that it signed a nonbinding agreement to merge with Blue Fin Holdings Co., which owns a 48,000-square-foot indoor cannabis growing facility in Longview, Wash., and subsequently exit the mining industry.
Under the agreement, the shareholders of Blue Fin will receive 1.25 shares of Royal Sapphire for each share held, making the former a subsidiary of Royal Sapphire.
The company will then seek shareholder approval for a 1-for-2 share consolidation, the delisting from the TSX Venture Exchange and its intent to apply for listing on the Canadian Stock Exchange and a name change to complement the business of Blue Fin.
Upon the transaction's closing, Royal Sapphire's board will be reconstituted, which will include nominees appointed by Blue Fin.
Royal Sapphire is a cash shell without any commercial operations or assets.