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by Stockwatch Business Reporter
The TSX Venture Exchange lost 1.70 points to close at 595.20 Thursday. Alex Tzilios's first capital pool shell, Savanna Capital Corp. (SAC: halted), plans to acquire an aspiring Colombian marijuana company called Varianz Corp. for the shell's qualifying transaction.
The QT terms include a 3.2911508-for-1 share split followed by a 1-for-2 rollback, both for the shell, so this is what will happen in effect: The shell will split its shares 1.6455754 for 1, leaving it with 7,569,646 shares issued, then issue 70 million shares to its target's shareholders. In connection with the QT, both Savanna and Varianz must raise money: Savanna will sell $800,000 worth of resulting issuer shares at six cents, and Varianz will sell $800,000 worth of resulting issuer shares at 10 cents. The resulting issuer will use the proceeds to start up its Colombian marijuana business.
Varianz owns a 20-hectare property in Colombia, but it has no operations yet. Last month, it received a licence to grow and process hemp, which is the variety of the cannabis plant that does not get a person high. The same licence enables it to sell hemp-derived products. Before the QT can close, Varianz must receive the equivalent licence to grow and process marijuana, which is the variety of the cannabis plant that does get a person high. That same licence will enable it to sell marijuana-derived products. Varianz hopes to receive this marijuana licence next month. For all of Varianz's talk about its "vision" to become an exporter of marijuana oil extracts, it does not yet appear to have an extraction facility.
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