Wayland Sells Half Of Its International Business For $126M
Wayland Group (OTC: MRRCF), a cultivator and processor of cannabis, announced it's entering into a letter of intent with ICC International Cannabis Corp (OTC: KNHBF), pursuant to which it will sell half of its international assets.
What Happened
Under the terms, Wayland Group will sell 49.9 percent of its international portfolio of assets. The deal is all-stock and Wayland will receive 300 million shares of ICC at a deemed price of 43 cents apiece.
Based on this price, Wayland's international business is valued at around $258 million, the company said in a statement. The transaction will value the international portfolio at 13.3-percent premium to the market value of Wayland's entire business.
Wayland is based in Burlington, Ontario, Canada and Munich, Germany. The company also has cultivation and production facilities in Canada, Germany, Switzerland, Italy and Colombia.
After the transaction is completed, Wayland intends to distribute the ICC shares to its shareholders. However, the spin out will take place at the "appropriate time" after a six-month holding period.
Why It's Important
The transaction will allow Wayland and its shareholders to unlock the value of the company's international assets. In addition, the company will get exposure to ICC's international operations.
After the transaction is complete, Wayland will sign a three-year supply agreement with ICC to supply it with 10,000 kilograms of EU-GMP certified product per year. In turn, ICC will have access to Wayland's German advisory board. The international business will be held in a subsidiary jointly owned by both companies.
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