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CALGARY,AB / ACCESSWIRE / December 31, 2020 / CannaIncome Fund Corporation ("CIF" or "CannaIncome"), a private Canadian corporation, announces a significant transaction. CIF has signed a purchase agreement with Durham Holding Corporation ("Durham"), a private Canadian corporation, whereby CannaIncome will sell seven portfolio holdings to Durham in exchange for 60,000,000 common shares of Durham.
Highlights of Transaction:
With the asset purchase, Durham will have increased its asset base and expects to qualify as an investment issuer;
Durham Holding Corporation is expected to be publicly trading in Q1/21, which will provide liquidity for CannaIncome;
CIF will have representation on Durham as Arthur Kwan is appointed to the Board of Directors of Durham;
Post Transaction, CannaIncome's holdings will be more aligned with its current strategy of focusing on investments on the higher end of the capital structure, and
The transaction is expected to be beneficial for both companies.
About CannaIncome Fund Corporation
CannaIncome Fund is a private investment company focused on the cannabis and cannabis-related sectors. Our aim is to provide yield and capital appreciation upside via valuation arbitrage opportunities primarily between private and public markets.
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws and "forward-looking statements" within the meaning of applicable securities legislation (collectively, "Forward-Looking Statements"). All statements, other than statements of historical fact, that address activities, events or developments that the Corporation believes, expects or anticipates will, may, could or might occur in the future are Forward-Looking Statements. The words "expect," "anticipate," "estimate," "may," "could," "might," "will," "would," "should," "intend," "believe," "target," "budget," "plan," "strategy," "goals," "objectives," "projection" or the negative of any of these words and similar expressions are intended to identify Forward-Looking Statements, although these words may not be present in all Forward-Looking Statements.
Forward-Looking Statements are subject to a number of risks and uncertainties that may cause the actual events or results to differ materially from those discussed in the Forward-Looking Statements, and even if events or results discussed in the Forward-Looking Statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Corporation.
Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks related to an investee company's ability to maintain its licences issued by Health Canada in good standing; uncertainty with respect to an investee company's ability to grow, store and sell medical cannabis in Canada; risks related to the costs required to meet an investee company's obligations related to regulatory compliance; risks related to the extensive control and regulations inherent in the industry in which an investee company operates; risks related to governmental regulations, including those relating to taxes and other levies; risks related to the nature of an investee company as an early stage business and a business involving an agricultural product and a regulated consumer product; risks related to building brand awareness in a new industry and market; risks related to the retention of senior management and key employees of an investee company; risks relating to restrictions on sales and marketing activities imposed by Health Canada, various medical associations and other governmental or quasi-governmental bodies; risks relating to incurring operating losses and maintaining profitability; risks relating to competition in the industry within which an investee company operates; risks inherent in the agricultural business; risks relating to energy costs; risks relating to an investee company's exposure to product liability claims, regulatory action and litigation; risks relating to recall or return of the an investee company's products; and risks relating to insurance coverage.
This list is not exhaustive of the factors that may affect the Corporation's Forward-Looking Statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the Forward-Looking Statements. The Corporation's Forward-Looking Statements are based on beliefs, expectations and opinions of management on the date the statements are made and the Corporation does not assume any obligation to update Forward-Looking Statements whether as a result of new information, future events or otherwise, or if circumstances or management's beliefs, expectations or opinions change, except as required by law. A number of important facts could cause actual results to differ materially from those indicated by the Forward-Looking Statements, including, but not limited to, the risks described herein. For the reasons set forth above, investors should not place undue reliance on Forward-Looking Statements. The Corporation undertakes no obligation to update its Forward-Looking Statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events other than as required by law. Accordingly, readers should not place undue reliance on Forward-Looking Statements. Financial amounts in Canadian Dollars, unless otherwise specified
SOURCE: CannaIncome Fund Corporation
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