U.S.-based marijuana company MJardin is set to go public in Canada by means of a reverse takeover, according to Marijuana Business Daily.
Toronto-listed investment holding company Sumtra Diversified Inc. and its subsidiary agreed to a reverse takeover deal with MJAR Holdings Corp., which operates licensed cultivation, processing and retail cannabis facilities in North America.
MJAR Holdings will merge with Sumtra's wholly owned subsidiary Sumtra Diversified (USA) Inc. and become a direct wholly owned subsidiary of Sumtra, and will then undertake a reverse takeover of Sumtra.
Sumtra will change its name to MJardin Group Inc. and delist its common shares from the TSX Venture Exchange. It has applied for its common shares to be listed and posted for trading on the Canadian Securities Exchange after the completion of the reverse takeover.
The deal is subject to approval from the respective shareholders of MJAR Holdings and Sumtra. Completion of the deal is expected no later than Nov. 30.
Sumtra operated as an investment holding company and had investments in real estate and publicly traded securities. It ceased active business operations in 2014 and a trading halt was imposed on its shares in October 2016 that still remains in effect.
Sumtra has a total of 6,237,400 common shares which will undergo a consolidation before the closing of the reverse takeover with 1 post-consolidation Sumtra share for every 31.5 outstanding Sumtra shares outstanding immediately before the consolidation.