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by Stockwatch Business Reporter

The TSX Venture Exchange added 6.80 points to 772.29 Tuesday. Scott Hayduk's halted NEX shell, Tilting Capital Corp. (TLL), has signed a definitive agreement to acquire MMJ Bioscience Inc., another aspiring producer of medical marijuana.

Tilting will roll back its shares 1:1.25, leaving it with 16,335,496 postconsolidated shares, and then issue an unstated number of shares to the shareholders of MMJ Biosciences, after which the shell will change its name to that of its target. MMJ must also sell a $3.5-million private placement, share price unstated.

Mike Hinam, Peter Hinam, Timothy Hinam and Andreas Gedeon formed MMJ Bioscience last year. The company has already applied for a licence to produce medical marijuana under Health Canada's MMPR policy at its 16,000-square-foot grow-op facility in Duncan, B.C. In January, Health Canada sent a letter stating that it would conduct a prelicence inspection after the company installed a vault, a cage and an electronic security system. MMJ then invested $1.2-million in upgrades, and in June the government said, "We have received the results of your security checks this week and we will be able to move forward with the final review." Health Canada still has to verify security clearance of MMJ's employees and conduct a final inspection, date unknown. Tilting's target anticipates receiving approval to produce 800 kilograms of medical marijuana a year, and it plans on selling its product in Canada and overseas. It must be confident that the government will approve its application to become a licensed producer, because MMJ has already acquired a second, larger facility in Lucky Lake, Sask.

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