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by Stockwatch Business Reporter
The TSX Venture Exchange lost 6.24 points to 779.30 Wednesday. Lisa McCormack's halted shell, Kitrinor Metals Inc. (KIT), has firmed up its acquisition of Scythian Biosciences Inc.
The shell will roll back 1 for 20, leaving it with 659,532 postconsolidated shares issued, then issue 2,887,051 postconsolidated shares to its target's shareholders.
Scythian hopes to develop marijuana-based drugs for treating concussions and traumatic brain injuries. It is planning to conduct preclinical and clinical trials with the University of Miami.
In March, 2017, Scythian sold a
$13.28-million private placement of 33,212,500 subscription receipts at 40 cents.
Every 20 subscription receipts will convert into one share of the resulting issuer, so the private placement subscribers will hold 1,660,625 shares on closing. Their adjusted cost will be $8 a share. Among the subscribers were Vic Neufeld's marijuana promotion, Aphria Inc. (APH: $5.25), and Andy DeFrancesco's Florida-based private equity firm, the Delavaco Group. Delavaco and Aphria do not say how many subscription receipts they bought. Delavaco is a shareholder of Aphria.
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