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by Stockwatch Business Reporter

The TSX Venture Exchange fell 14.84 points to 867.98 Monday, a new one-year low for the junior exchange. Last Friday, Alan Rootenberg's capital pool shell, Searchtech Capital Corp. (MJN), received approval from shareholders at a meeting to roll back the shell 1:7 and then acquire Paul Rosen's Hortican Inc., doing business as PharmaCan Capital. Searchtech will also change its name to PharmaCan Capital Corp. Shortly after the meeting, the shell and its target signed a definitive agreement, and PharmaCan has agreed to supply information about its financials and shareholders by the end of the month. The deal is still subject to approval by PharmaCan, which will ask its shareholders to approve going public at a meeting on Oct. 29.

Following the 1:7 rollback, Searchtech will acquire PharmaCan for about 32.78 million postconsolidated shares. The target, formed in September, 2012, invests in medical marijuana companies operating under the MMPR policy and is a shareholder of three private licensed medical marijuana producers, In the Zone Produce Ltd., the Peace Naturals Project Inc. and Whistler Medical Marijuana Corp. PharmaCan also has a letter of intent to acquire 100 per cent of In the Zone, which has a grow-op facility in the Okanagan Valley. The target has also invested in several companies that hope to soon have a licence to produce medical marijuana, including Dany Lefebvre's Vert Medical Inc. in Quebec and Shawn Galbraith's Evergreen Medical Supply Inc. in Victoria.

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