Canadian Medical Cannabis Provider Expanding into US Market Through RTO
Source: Streetwise Reports
July 25, 2017 (Investorideas.com Newswire) A company with Canadian medical cannabis provider Aphria's backing is doing a reverse takeover on the Canadian Securities Exchange and expects to begin trading on July 26.
Liberty Health Sciences Inc. (LHS:CSE), an operator in the medical cannabis market, expects to begin trading on the Canadian Securities Exchange on Wednesday, July 26, under the symbol LHS. The company is being formed through a reverse takeover with privately held DFMMJ Investment Ltd. and SecureCom Mobile Inc., whose shareholders approved the arrangement on July 20, and renamed Liberty Health Sciences.
In April, Aphria Inc. (APH:TSX) announced a $25 million investment in DFMMJ Investment Ltd. Aphria is licensing its Aphria medical brand as well as its greenhouse growing intellectual property system to Liberty.
According to the company, Aphria is one of Canada's lowest cost producers, and "produces, supplies and sells medical cannabis," and is "the first public licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters."
Liberty stated that it was "launched to acquire and operate U.S.-based companies in the medical cannabis market." In its first transaction, it entered into an agreement with Chestnut Hill Tree Farm LLC, which "grants the company all economic risk and rewards associated with the Florida-based operation." Chestnut holds one of seven licenses in Florida and is a "nursery authorized by the Florida Department of Health, Office of Compassionate Use, as a dispensing organization of medical cannabis to patients in need in the State of Florida."
Liberty's investment strategy, according to its website, is to invest in states in the U.S. that have an established medical cannabis market, grant a limited number of cultivation licenses, do not impose canopy restrictions and have a large population of users, at least 2%. The company stated that this strategy "reduces investor risk and aims to maximize shareholder value."
Liberty is helmed by George Scorsis, who has an "extensive background in managing growth within highly regulated environments." He served as president of Mettrum Health Corp., a producer of medical cannabis in Canada that was acquired by Canopy Growth Health Corp. for $430 million. He also was president of Red Bull Canada, and in that capacity "worked closely with Health Canada on guidelines regulating the energy drink category."
The board of directors includes Vic Neufeld and John Cervini, cofounders of Aphria Inc. Cervini is the founding chair of the Ontario Greenhouse Marketing Association and brings extensive experience in greenhouse growing technology. Aaron Serruya, CEO of Yogen Fruz, also serves on the board and has extensive retail expertise as president of International Franchise Inc., which is the home of the Yogen Fruz, Pinkberry and Swensen's Ice Cream brands, with 4,500 franchises globally.
Liberty Health Sciences has 287 million shares outstanding at an issue price of $0.624 per share. After the reverse takeover, Aphria will hold 37.6% of Liberty Health Sciences, management and the board 9% and SecureCom shareholders 14%, leaving approximately 39% for new shareholders.
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in this article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Liberty Health Sciences Inc., a company mentioned in this article.
Marijuana / Hemp Stocks
Like Marijuana Stocks? View our Marijuana / Hemp Stocks Directory
Join our Group on Linkedin - Marijuana / Hemp Stocks - News and Trends in Green Investing
Global Cannabis Investing - features Investor Ideas Cannabis news
Watch the 420 Cannabis Investor video
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release on the Investorideas.com newswire http://www.investorideas.com/News-Upload/
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.