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Scythian Biosciences reaches binding agreement to buy medical cannabis company

Scythian Biosciences Corp. entered a binding agreement to buy MMJ International Investments Inc. after having extended the deadline twice for finalizing an agreement.

MMJ International owns ABP SA, a pharmaceutical import and distribution company that holds the first and only cannabis license in Argentina.

Under the business combination agreement, Scythian will acquire all the issued and outstanding common shares of MMJ through a wholly owned unit.

In exchange, Toronto-based Scythian will issue 6,176,320 of its common shares to MMJ shareholders.

The binding agreement supersedes the previous nonbinding letter of intent between the companies, which had been extended twice until May 11.

Scythian's focus is on preventing and treating concussions and traumatic brain injuries with its cannabinoid-based drug therapy.