Makena Resources Inc. is looking to switch to the cannabis industry under a new management team and a new board, the company said Dec. 20.

The company entered into a nonbinding letter of intent to acquire 100% of BioCan Technologies Inc. and Epimeron Inc. by issuing 857,142,858 common shares for a total transaction value of C$30.0 million.

Additionally, Makena will raise up to C$15.0 million via a nonbrokered private placement and will appoint a new management team and a new board as part of its recapitalization.

Following the combination of Makena, BioCan and Epimeron, the surviving company will operate as Willow Biosciences Inc.

The transaction is expected to close Jan. 2, 2019, and the recapitalization will be complete around Jan. 31, 2019.