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by Stockwatch Business Reporter

The TSX Venture Exchange inched up a fraction to close at 825.04 Monday. Paul Barbeau's halted capital pool shell, Panda Capital Inc. (PDA), has submitted a filing statement for its qualifying transaction, which is the acquisition of a licensed marijuana producer called ABcann Medicinals Inc. The shell, which has 2,812,500 shares issued, will issue 78,615,524 shares to its target's shareholders. On closing of the QT, Panda will change its name to ABcann Global Corp. The shell and its target expect to close the acquisition on April 17.

ABcann Medicinals owns a facility in Napanee, Ont. It began selling marijuana in 2016. In the nine months to Sept. 30, 2016, it lost $2.96-million on revenue of $210,750. At the end of that period, it had a working capital deficit of $4.02-million. ABcann Medicinals plans to double the production capacity at its facility to 2,000 kilograms of marijuana a year. It expects to spend at least $2-million on the expansion and to complete it by year-end. It also plans to build a second facility, next to the first, which will produce up to 20,000 kg a year. The company estimates a construction cost of at least $12-million and a completion date of Dec. 31, 2017. To finance these plans, Panda Capital has arranged a $15-million non-brokered private placement of debentures and an $8-million brokered private placement of subscription receipts at 80 cents. The agents for the brokered financing are Canaccord Genuity Corp. and PI Financial Corp.

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