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by Stockwatch Business Reporter
The TSX Venture Exchange lost 9.27 points to close at 381.13 Wednesday. Livio Susin's first capital pool shell, Navion Capital Inc. (NAVN: suspended), has cancelled its qualifying transaction, which was the acquisition of Hollyweed North
Cannabis Inc. The shell did not provide a reason for the cancellation.
Under the arrangement with Hollyweed, the shell was going to roll back 1 for 2, leaving it with two million shares issued, then it was going to issue 82,257,397 shares to Hollyweed's shareholders. In connection with its going public, Hollyweed had hoped to sell a $5-million non-brokered private placement at 50 cents, as well as a $4-million brokered private placement at a price that it never got around to announcing. It intended to use the proceeds for equipment purchases and for its processing facility improvements.
Hollyweed holds a marijuana processor's licence and a marijuana dealer's licence, but not a marijuana grower's licence. This means it can perform extraction, manufacture marijuana oil or capsules, and package those marijuana products for sale to authorized distributors. Hollyweed has been waiting for a grower's licence for at least 19 months. It has a cultivation and processing facility in Malahat, B.C., about an hour northwest of downtown Victoria. The licensing delay likely factored into the cancellation of the QT, along with the general cannabis sector slowdown last year, as well as the sharp market decline caused by COVID-19 in the last few weeks.
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