MYM Nutraceuticals has signed a non-binding letter of intent with Crop Infrastructure to acquire all of the issued and outstanding shares in the capital of Crop, a company which owns cannabis and hemp assets in Washington, Nevada, California, and Oklahoma. MYM has the intention of developing and implementing an extensive restructuring plan for Crop.
"MYM is the first and only Canadian company that offers integrated strategic, financial, management, operational and marketing services to cannabis entities that have valuable assets but require management support and capital to navigate today’s challenging landscape," the team with the company explains. "The acquisition of Crop is the first of what is expected to be a series of opportunistic acquisitions and/or investments."
“The capital markets in the cannabis industry have become complex and demanding,” said Howard Steinberg, CEO of MYM. “We are looking to acquire companies with valuable core assets that are poised to benefit from the restructuring expertise our team can bring, in terms of both capital and management support. We look forward to working closely with the Crop team as we develop a financial and operational plan to enable its assets to flourish in the future.”
Michael Ruscetta, CEO of Trichome Financial, commented “MYM’s strategy aligns very well with the core capabilities of its management team as well as our view of current market dynamics and opportunities in the cannabis sector.”
“We enthusiastically support the MYM transaction to acquire Crop,” said Jesse Kaplan, Principal of Plaza Capital. “We have confidence in their deeply talented team and ability to restructure Crop’s distressed assets to make them profitable. We look forward to working with them on this and potentially future restructuring projects.”
“MYM’s team has proven to be extremely knowledgeable and reliable in helping Crop realign our strategy,” said Michael Yorke, CEO of Crop. “They are extremely talented and well capitalized. We believe that this transaction is in the best interest of our shareholders.”
Under the terms of the proposed transaction, MYM would acquire all of the outstanding common shares of Crop on an exchange ratio of 10.5 Crop shares for 1 MYM common share. The transaction is conditional on, among other things, definitive documentation and court and Crop shareholder approval.