Sunniva (CSE: SNN) (OTCQX: SNNVF), a vertically integrated cannabis company, this morning announced that it plans to spin out its Canadian assets into a separate Canadian entity and to apply to list the shares on the Toronto Stock Exchange (“TSX”) and the NASDAQ Stock Market (“NASDAQ”). Per the update, the purpose of the transaction is to attain the underlying value of Sunniva’s assets on both sides of the border. Upon completion of the spinout transaction, which is subject to various conditions such as shareholder and exchange approval, Canadian assets would include Sunniva Medical Inc. (“SMI”), which is currently building the Sunniva Canada Campus in British Columbia. Shareholders will receive an information circular regarding the proposed spinout which will include information on the management, board of directors, financial statements and business plans of each of the entities. A meeting of the shareholders of Sunniva will be required. Existing Sunniva shareholders at the record date of the meeting will obtain a proportionate number of shares in the new entity and continue to hold a proportionate number of shares in the current CSE listed entity. Sunniva has retained Canaccord Genuity Corp. to act as a financial advisor in connection with the transaction and other strategic initiatives.
“We feel Sunniva is undervalued and through the Spinoff Transaction we hope to unlock significant value for our existing shareholders. Creating a new Canadian company with our Canadian assets and listing them on the TSX and NASDAQ would be expected to bring added visibility and additional analyst coverage to our story and has the potential to attract institutional investors that are currently unable to purchase stock on the CSE or purchase companies holding US assets,” Dr. Holler, CEO of Sunniva stated in the news release. “Our CSE listed entity, Sunniva Inc., will continue to focus on full vertical integration in California and other states with a focus on potential mergers and acquisitions or partnerships, further expansion of licensed retail outlets, and the near term launching of Sunniva branded products. Our initial flagship 325,000 square foot purpose-built cGMP designed Sunniva California Campus in Cathedral City which includes our flagship Sunniva onsite dispensary is anticipated to be operational in Q4 2018 and our extraction facility commenced operations in June 2018.”
To view the full press release, visit http://cnw.fm/PdbX0
About Sunniva Inc.
Sunniva, through its subsidiaries, is a vertically integrated cannabis company operating in the world’s two largest cannabis markets – Canada and California – where it is committed to delivering safe, high-quality products and services at scale. The company’s vision is to become the lowest cost, highest quality cannabis producer in the markets it serves by building large scale purpose-built current Good Manufacturing Practice (“cGMP”) designed greenhouses, offering better quality assurance with cannabis products free from pesticides, providing better patient and doctor access to cannabis education and sourcing better therapeutic delivery devices. Sunniva’s management and board of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech industries. For more information, visit the company’s website at www.Sunniva.com.
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