Article by New Cannabis Ventures
ICC International Cannabis Corporation (formerly, Shogun Capital Corp.) (nex:SHO.H) (the “Company”) is pleased to announce that it has completed its previously announced qualifying transaction (the “Qualifying Transaction”) consisting of the acquisition of all of the issued and outstanding common shares (the “ICC Common Shares”) in the capital of International Cannabis Corp (“ICC”) by way of a “three-cornered merger” pursuant to the provisions of the BVI Business Companies Act, 2004 (the “Merger”), whereby a wholly-owned subsidiary of the Company amalgamated with ICC and each ICC shareholder received 1 common share in the capital of the Company (a “Common Share”) for every 1.25 ICC Common Shares held by them. Final acceptance of the Qualifying Transaction will occur upon the issuance of a Final Exchange Bulletin (the “Exchange Bulletin”) by the TSX Venture Exchange (the “TSXV”). Subject to final approval of the TSXV, the Common Shares are expected to commence trading on the TSXV at the opening of the markets on November 29, 2016 under the symbol “ICC”.
The Company is a licensed producer of recreational cannabis, cannabinoid extracts and by-products for medicinal use and industrial hemp in Uruguay. The principal activities of the Company are the production and sale of cannabis from its facilities in Uruguay as regulated by Uruguayan Institute for the Regulation and Control of Cannabis.
Immediately prior to the closing of the Qualifying Transaction, the Company filed articles of amendment to: (i) change its name to “ICC International Cannabis Corporation”; and (ii) adopt an advance notice provision, as more fully described in the Company’s management information circular dated August 31, 2016. In conjunction with the closing of the Qualifying Transaction, the Company’s auditors will be MNP LLP, Chartered Professional Accountants.
Prior to the closing of the Qualifying Transaction, ICC completed a private placement (the “Private Placement”) of 32,500,000 subscription receipts of ICC (“Subscription Receipts”) at a price of C$0.40 per Subscription Receipt for gross proceeds of C$13 million. At the closing of the Qualifying Transaction, the holders of the Subscription Receipts received 26,000,000 Common Shares, being 0.8 Common Shares for each one Subscription Receipt. In connection with the Private Placement, GMP Securities L.P., as lead agent and sole bookrunner, and Mackie Research Capital Corporation (collectively, the “Agents”) received a cash commission of C$910,000 and broker warrants to purchase 1,820,000 Common Shares exercisable at a price of C$0.50 per Common Share for a period of 24 months from the date that the Common Shares are listed on the TSXV.
Following completion of the Qualifying Transaction, the Company has 112,200,010 Common Shares issued and outstanding. Assuming the conversion of all outstanding options and warrants, 121,373,010 Common Shares would be outstanding on a fully diluted basis.