Cannasouth Limited (NZX:CBD) has signed a binding term sheet with Bay of Plenty based Eqalis Group New Zealand Limited (Eqalis) to advance a potential 50:50 merger between the two companies.
The Boards of CBD and Eqalis have executed the Share Sale Deed which formally records all of the legal terms and conditions of the Merger, and the Independent Advisor’s Report is expected to be circulated to shareholders in the next ten business days.
A Special Meeting of CBD Shareholders is expected to be held by the end of April.
In conjunction with the Merger, CBD will also raise circa $9 million of new equity capital, with existing CBD and Eqalis shareholders able to apply for shares on a pro rata basis with priority given to third party investors.
The Merger is conditional on CBD raising not less than $7 million of new capital by 9 June 2023.
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