Shares in MMJ Phytotech have surged after the Perth-based medicinal cannabis company announced a $40 million deal to backdoor list two of its subsidiaries on the Toronto Stock Exchange's Venture Exchange.
Under the terms of the deal, MMJ’s Canadian subsidiary United Greeneries and Swiss subsidiary Satipharm will be rolled into the TSX-V-listed shell of Top Strike Resources.
In return, Top Strike will pay MMJ $C2.5 million in cash and $C37.5 million in shares (300 million shares at 12.5 Canadian cents).
Top Strike will concurrently undertake a $C15 million equity raising.
There are already 34 approved medicinal marijuana companies operating in Canada, 10 of which are publicly listed.
The company is also expecting considerable upside from a new regulatory system for recreational cannabis expected to be introduced in the second half of next calendar year.
Read more at The West Australian