Benzinga | Jul 9, 2021 01:39PM EDT

Weed Companies On The Move: IM Cannabis Completes Purchase Of MYM Nutraceuticals

Multi-country medical and recreational cannabis operator, IM Cannabis (CSE: IMCC) (NASDAQ: IMCC) confirmed Friday it has completed its previously announced acquisition of MYM Nutraceuticals (CSE:MYM) valued at CA$85 million ($67.6 million).

MYM is a Canadian cultivator, processor and distributor of cannabis through its two wholly-owned subsidiaries - SublimeCulture Inc. and Highland Grow Inc.

The transaction was finalized under the terms and conditions of an agreement between IMC, MYM and Trichome Financial Corp that resulted in the acquisition by IMC of all the issued and outstanding shares of MYM. Following the finalization of the acquisition, IMC indirectly (via its wholly-owned subsidiary Trichome Financial Corp.) has ownership and control over 100% of the issued and outstanding MYM shares.

Under the deal, ex MYM shareholders obtained a total of 10.07 million IMC shares or around 15% of the total number of the issued and outstanding IMC shares. The MYM shares will be delisted from the Canadian Securities Exchange around July 9.

"We are extremely pleased to have closed the acquisition of MYM. Strategically, this Transaction is consistent with IMC's focus on premium and super-premium segments of the cannabis market for consumers and patients in all markets," Oren Shuster, CEO of IMC stated. "With coast-to-coast distribution, including a strong leadership position in Eastern Canada, Highland Grow will further enhance our distribution capabilities, fast-track our entrance into new markets, and results in additional opportunities to export premium cannabis products to Israel and Germany."

In connection to the transaction, Desjardins Capital Markets and Torys LLP acted as financial advisor and legal counsel, respectively, to IMC. Hyperion Capital Inc. and Borden Ladner Gervais LLP acted as financial advisor and legal counsel, respectively, to MYM.

Price Action

IMC shares were trading 2.38% lower at $4.92 per share at the time of writing Friday morning.

Photo: Courtesy of IM Cannabis