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by Stockwatch Business Reporter

The TSX Venture Exchange rose 7.02 points to 587.19 Wednesday. Yvan Routhier's first capital pool shell, Capricorn Business Acquisitions Inc. (CAK: halted), plans to acquire a U.S. hemp CBD (cannabidiol) start-up, Tikun Pharma Inc., for the shell's qualifying transaction. The shell, which has 6,750,203 shares issued, will issue 55,062,236 shares to its target's shareholders.

Tikun Pharma is working on skin care products that contain CBD (extracted from hemp, not marijuana). To help finance its product development and, eventually, sales and marketing, it is selling a $1.5-million private placement of debentures. The debentures will be convertible into shares at 50 cents. Tikun Pharma plans to raise more money afterward, perhaps $5-million, but there are no terms yet for this second financing.

Although Tikun Pharma is a start-up, it is backed by a 13-year-old medical marijuana company in Israel called Tikun Olam Ltd. Medical marijuana has been legal in Israel since the 1990s, but users back then had to grow their own plants. In 2010, Tikun Olam became the first company to be allowed to sell medical marijuana in Israel. As of 2017, there were about 26,000 registered medical marijuana users in the country.

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