Under the terms of the agreement, MYM would acquire all of the outstanding common shares of Crop on an exchange ratio of 10.5 Crop shares for one MYM common share. The transaction is subject to definitive documentation, court, and Crop shareholder approval.
Crop owns cannabis and hemp assets in Washington, Nevada, California, and Oklahoma. MYM has plans to develop and implement an extensive restructuring plan for Crop.
MYM is the first and only Canadian company that offers financial, management, operational and marketing services to cannabis entities. The acquisition of Crop is the first of what is expected to be a series of opportunistic acquisitions and/or investments, according to a company statement.
“The capital markets in the cannabis industry have become complex and demanding. We are looking to acquire companies with valuable core assets that are poised to benefit from the restructuring expertise our team can bring, in terms of both capital and management support. We look forward to working closely with the Crop team as we develop a financial and operational plan to enable its assets to flourish in the future,” MYM CEO Howard Steinberg stated.