True Leaf Brands Inc (CSE:MJ) (OTCPINK:TRLFF) (FRA:TLA) said Monday it had closed the previously announced amalgamation deal - the last step of its restructuring process - and appointed three board directors.
As reported last month, the group was set to emerge from creditor protection after closing a refinancing transaction.
Shares soared over 26% in Toronto on the day to stand at C$0.77 each
This amalgamation was undertaken to reacquire True Leaf Cannabis Inc (TLC) and True Leaf Investments Corp (TLI), which had been acquired by the so-called 'AcquisitionCos' as part of True Leaf's proposals to its creditors and restructuring.
The 'AcquisitionCos' were arm’s length and were owned by private investors.
"We are happy to put a difficult year behind us and ready to blaze a trail into an exciting 2021," said True Leaf CEO Darcy Bomford on Monday.
Also in the statement on Monday, True Leaf announced that as part of the amalgamation, it will appoint Andrew Gordon, Nathan Lidder and Mahdi Shams to its board of directors, who bring 'extensive' cannabis-related corporate finance, legal, regulatory and communications experience.
The appointments are subject to the completion of required Health Canada security clearances, the company added. These appointees will serve on a newly formed advisory board to provide strategic advice.
True Leaf issued over 17.4 million post-consolidated shares at a deemed price of C$0.375 each to the shareholders of the AcquisitionCos.
It now holds over 28.7 million post-consolidated shares issued and outstanding. No new insiders or new control persons were created as a result of the transaction.
True Leaf Cannabis Inc is a licensed producer and owner of True Leaf Campus, an 18,000 square foot facility located on a 40-acre site zoned for the cultivation, processing, and sale of cannabis in Lumby, British Columbia.
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