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by Stockwatch Business Reporter

The TSX Venture Exchange fell 2.23 points to 609.99 Wednesday. Gunther Roehlig's NEX shell, Darien Business Development Corp. (DBD: halted), has filed an information circular in connection with its acquisition of a U.S. medical marijuana producer, Vireo Health Inc. The circular identifies the director nominees for the resulting issuer. The acquisition terms are not yet available, but Darien and Vireo expect to close the deal next month.

Vireo Health is based in Minnesota. It grows marijuana but does not sell bud or flower. Instead, it sells marijuana oil, vapes and capsules. As well as Minnesota, the company sells its products in New York, Pennsylvania and Maryland. We should find out whether Vireo is profitable when it submits a listing statement for the resulting issuer.

In the summer of 2018, Vireo raised about $17-million (U.S.) by selling preferred shares at $45 (U.S.). Most of the buyers were in Ontario. Vireo sold its preferred shares with help from Eight Capital Inc., an investment dealer in Toronto. Among the financing subscribers was Jamie Blundell's Cannabis Growth Opportunity Corp. (CGOC: $1.72), which bought 33,500 preferred shares for $1.5-million (U.S.). Vireo and Darien have not yet said how many resulting issuer shares will be issued in exchange for each $45 (U.S.) preferred share.

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