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by Stockwatch Business Reporter

The TSX Venture Exchange fell 6.43 points to 981.50 Monday. George Durst's halted NEX shell, Saratoga Electronic Solutions Inc. (SAR), plans to acquire Abba Medix Corp., another hopeful medical marijuana company, and then resume trading on the Canadian Securities Exchange.

The shell, which has 18,461,300 shares outstanding, will issue 32 million shares to Abba Medix shareholders. The target, operating in Richmond Hill, Ont., applied to Health Canada for a licence to produce medical marijuana last November, but it has yet to receive approval to operate a grow-op. Abba Medix is vague about the progress of its application, noting in its press release that it has "secured" a 45,000-square-foot facility to support its production plan. It then states it has "invested over $1-million in the first phase of the plan that includes 15,000 square feet of production space." It is unclear whether the company has spent $1-million on 15,000 square feet of production space or something else in its first phase. Abba Medix is also working on other ways to generate revenue while it waits to hear back from Health Canada. Last June, for example, it acquired an exclusive licence from an OTC Pink outfit, Dutch Gold Resources Inc. (DGRI: $0.0004), on formulas to make and sell hemp-flavoured tea drinks and energy drinks. It appears that Abba Medix has paid $100,000 (U.S.) already, leaving $200,000 (U.S.) to go. The licence covers Canada, Taiwan and parts of the Middle East, notably not the United States. Also included in the deal was a licence to sell a THC potency test kit, in which users of medical marijuana can determine the approximate percentage of Tetrahydrocannabinol (THC) in a strain.

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