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by Stockwatch Business Reporter

The TSX Venture Exchange added 1.40 points to 998.87 Monday. Steve and Gary Mathiesen's halted capital pool shell, Strachan Resources Ltd. (SCN), plans to acquire Lotus Ventures Inc., change its name to that of its target, and transfer to the Canadian Securities Exchange by the end of next month. The shell, which first reported this deal two weeks ago, has already filed a "non-offering prospectus" detailing the transaction and scheduled a Sept. 16 meeting to secure shareholder approval to close the qualifying transaction.

Strachan will acquire Lotus Ventures for 17 million shares. The shell will thereby inherit an option to acquire a medical marijuana grow-op in Spallumcheen, a district municipality in the Okanagan region, with a licence issued under an old government pot policy (MMAP). To exercise the option, Strachan will have to issue two million shares and invest $250,000 in an application to operate the grow-op under the new government pot policy (MMPR). Strachan estimates it will cost up to $1.6-million to complete the application and upgrade to a facility to reach the standards of the strict MMPR guidelines. The shell plans to close a $300,000 non-brokered private placement of 25-cent shares in connection with this QT, which will bring its total working capital to about $415,000. This means Strachan will have to go back to the market soon if it is serious about its plans. So far, Health Canada has issued 13 MMPR licences and received more than 900 applications. It has not issued a new licence since the end of April, when OrganiGram Ltd. of Moncton became the 13th licensed producer.

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