Tidal Royalty Corp (CSE:RLTY.U) (OTCMKTS:TDRYF) has amended its business combination agreement with MichiCann Medical Inc, signing a restated deal to acquire the firm’s issued and outstanding shares on a 2:1 basis.
The entities do business together under the name Red White & Bloom following an original deal from May 2019.
The share considerations will now consist of one common share and one Series 2 convertible preferred share. The Series 2 shares issued to MichiCann will carry voting rights.
READ: Tidal Royalty: Business-combination agreement with MichiCann Medical 'strategically moving forward’
The transaction will be completed via a three-cornered amalgamation under the Business Corporations Act of Ontario, which will see 2690229 Ontario Inc, a wholly-owned subsidiary of the company, will amalgamate with MichiCann. The proposal will require two-thirds approval from MichiCann shareholders, the company said.
The amended agreement also states that the proposed transaction is subject to a 16:1 share consolidation and an official name change to Red White & Bloom Brands Inc. The board will consist of two members of the current board and three nominees from MichiCann.
In conjunction with the proposed deal, Tidal and MichiCann have filed an updated application with the CSE to list the common shares. The deal will require approval from the exchange.
In the meantime, shares of Tidal have been halted on the CSE.
Tidal, based in Vancouver, provides capital to help grow licenced US cannabis firms in exchange for receiving a percentage of future top-line revenues.
MichiCann is a private cannabis investment company based in Vaughan, Ontario. Anchored by its Illinois facility, MichiCann intends to establish large-scale production capabilities focused on hemp extraction and product manufacturing in the US.
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