Scythian Biosciences (CSE:SCYB) announced an US$88 million investment into privately held cannabis company Verano Holdings in class B units.
As quoted in the press release:
Scythian has also agreed to sell a 100 [percent] interest in 3 Boys Farms LLC (“3 Boys Farms”), which it will acquire as described below, to Verano in exchange for USD$100 million of Class B units in Verano. All transactions related to 3 Boys Farms are subject to the receipt of all required governmental approvals including from the Florida Department of Health, Office of Medical Marijuana Use (“Florida OMMU”).
Scythian is also pleased to announce that it has entered into a binding share purchase agreement to acquire 100 [percent] of the issued and outstanding common shares of CannCure Investments Inc. (“CannCure”), a privately-held Ontario corporation. CannCure indirectly owns 60 [percent] of 3 Boys Farms, a Florida-based limited liability company with authorization to cultivate, process and dispense medical cannabis as a licensed medical marijuana treatment center in accordance with Florida state law under Florida Statutes section 381.986. Upon the acquisition of CannCure, Scythian will hold a contractual right to purchase the remaining 40 [percent] of 3 Boys Farms, subject to the receipt of all required governmental approvals from the Florida OMMU.
This strategic investment and transaction will give Scythian a substantial stake in Verano and expand its investments in the U.S. to key markets, including Illinois, Maryland, Michigan, Nevada, Ohio, Florida and Puerto Rico, with additional states to be added in 2019. The investment and transaction further strengthen Scythian’s position as the leading cannabis incubator in the U.S. cannabis marketplace.