Specialist Investment Company, MMJ Group Holdings Limited (ASX: MMJ) (“MMJ”), wishes to advise that BevCanna Enterprises Inc.(CSE:BEV) (“BEV” or “BevCanna”) has announced an offer (the Offer) to acquire 100% of Embark Health Inc. (“Embark”). MMJ’s investment in Embark consists of shares and warrants with a current book value of CAD2.4m.
Subject to a review of the Offer documentation, MMJ expects that its share of the Initial Consideration (refer below) would approximate the current book value of MMJ’s investment1.
In commenting on the transaction, MMJ’s Chairman, Mr. Wall said “This proposed acquisition of Embark Health Inc. is beneficial for MMJ investors. It would allow MMJ to exit its investment at its book value and retain a share in the potential upside of the larger merged Bevcanna business.”
MMJ was a foundation investor in Embark in July 2018 – the investment now comprises 3.697m common shares (approximately 12% shareholding) in Embark with warrants that provide the option for MMJ to acquire further Embark shares.
In 2018 MMJ was an early investor in Bevcanna and sold its investment following its initial public offering in 2019.
Details of the Offer are included in the attached announcement by Bevcanna to the Canadian Stock Exchange.
Under the terms of the Offer:
- Bevcanna would acquire all of the issued and outstanding shares of Embark (the “Shares”) from its shareholders.
- Bevcanna will acquire the Shares in consideration for a purchase price of 46.7million...
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