Through a share purchase agreement, Quinto Resources is now at liberty to purchase all of the issued and outstanding shares of various subsidiaries wholly-owned by Emerald Health Therapeutics. The subsidiaries, which jointly operate a premium 88,000 square foot craft cannabis production indoor facility, include Verdélite Sciences, Inc. and Verdélite Property Holdings, Inc.
The $ 21 million cash transaction was negotiated at arms-length and included a collective amount of cash from each of the Subsidiaries at the closing date. Once the transaction is concluded, the Subsidiaries will become Quinto’s wholly-owned subsidiaries. This will also result in a change of business for Quinto under the guidelines of the TSXV.
The purchase agreement is comprehensive and contains all the necessary representations, including warranties, indemnities, covenants, and conditions. For the benefit of each party, they are customary for a transaction of this nature.
Meanwhile, Quinto has identified several ways of financing the transaction. It will use the combination of private placements and bridge financing. This comes in two debt bridge financings of five million dollars each. The company is also looking up at a brokered private placement, which has close to twelve million dollars. An additional amount is expected from Quinto’s net proceeds.
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