TORONTO, May 12, 2020 /CNW/ - Meta Growth
Corp. (TSXV: META) ("Meta Growth", "META" or the
"Company"), a leading Canadian recreational cannabis retailer,
today announced that it is selling its common shares in Tetra
Pty Ltd ("Tetra") to THC Global Group Limited (ASX:
THC) ("THC") for total consideration of AU$900,000.
META originally invested in Tetra, a leading clinic network in
Australia facilitating access to
legal medicinal cannabis, in March 2019. As META's strategic
focus shifted from medicinal cannabis to recreational retail
cannabis, the Company has been evaluating opportunities to monetize
its medicinal cannabis investments and redeploy the proceeds into
recreational retail. META's total investment in Tetra was
AU$100,000.
The consideration value of AU$900,000 is allocated as
AU$150,000 in cash, and AU$750,000 in THC shares, and will be paid
on a staged basis as per the following table:
|
Stage
1
At Close
|
- AU$75,000 in
cash
- 1,350,000 THC
shares issued at AU$0.25 per share
- 1,500,000 stock
options in THC exercisable at AU$0.40 expiring two years after
issue
|
|
Stage
2
Three
months
after Close
|
- AU$37,500 in
cash
- AU$225,000 in THC
shares, with the issue price calculated as the higher of 105%
of the 10-trading day VWAP prior to issue date or
AU$0.35
|
|
Stage
3
Six months
after
Close
|
- AU$37,500 in
cash
- AU$187,500 in THC
shares, with the issue price calculated as the higher of 105%
of the 10-trading day VWAP prior to issue date or
AU$0.40
|
The Stage 1 THC shares and the THC stock options are subject to
a 12 month hold from their date of issue.
THC is a diversified global cannabis company with primary
operations in Australia and
Canada. It is listed on the ASX
under the symbol THC. THC is the first ASX listed entity to
fully own and operate commercial medicinal cannabis production
facilities under Australia's
cannabis regulations, and its Southport facility is one of the largest
pharmaceutical GMP cannabis manufacturing facilities in the
world. THC also owns and operates Crystal Mountain, a
profitable, fast growing hydroponics equipment and supplies
wholesaler and retailer servicing the rapidly expanding cannabis
sector in North America and
Europe. Post-acquisition, Tetra
and THC will pursue a number of expansion opportunities, including
expanding its current network of partnerships with private
hospitals and medical centres in Australia, and exploring the potential to
launch in new regions including New
Zealand.
The transaction is subject to customary closing conditions and
is expected to close before the end of May
2020.
About Meta Growth
Meta Growth is a leader in secure,
safe and responsible access to legal recreational cannabis
inCanada. Through its Canada-wide
network of Meta Cannabis Co.™, Meta Cannabis Supply Co.™ and
NewLeaf Cannabis™ recreational cannabis retail stores, Meta Growth
enables the public to gain knowledgeable access to Canada's network of authorized Licensed
Producers of cannabis. Meta Growth is listed on the TSX Venture
Exchange under the symbol (TSXV: META).
For more information on Meta Growth, visit:
metagrowth.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statements
This news release contains
forward-looking statements and forward-looking information within
the meaning of applicable securities laws. The use of any of the
words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify forward
looking statements or information. Forward-looking statements and
information in this news release includes, but is not limited
to, satisfaction of closing conditions and the closing of the
sale of the Company's common shares of Tetra to THC, the timing of
receipt of the compensation from THC for the common
shares, and THC and Tetra's expansion
opportunities. Although the Company believes that the
expectations and assumptions on which the forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information because the Company cannot give any assurance that they
will prove to be correct. Since forward-looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results and developments may differ materially from those that are
currently contemplated by these statements depending on, among
other things, risks relating to the effects of the COVID-19
pandemic on the economy; the ability of the Company and THC to
meet closing conditions, the ability of THC to pay the
consideration for the Tetra common shares as it comes due; the
ability of THC and Tetra to expand operations; future legislative
and regulatory developments; inability to access sufficient capital
from internal and external sources, and/or inability to access
sufficient capital on favourable terms; general business, economic,
competitive, political, regulatory and social uncertainties; the
delay or failure to receive regulatory approvals and the
recreational cannabis industry in Canada generally. The Company cautions that
the foregoing list of risks and uncertainties is not exhaustive.
The forward-looking statements and information contained in this
news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statement or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Meta Growth Corp.