Franchise Cannabis Corp. ("FCC") entered into a binding letter of intent to acquire Thoughtful Brands Inc. (CNSX : TBI) ("TBI") in a reverse merger transaction for approximately CAD 220 million.
Completion of the Transaction remains subject to a number of conditions, including, but not limited to: negotiation of definitive documentation; receipt of any required regulatory approvals; the approval of the shareholders of TBI and FCC; completion of the Consolidation; completion of the Concurrent Offering for gross proceeds of not less than CAD 10,000,000 and resulting Canadian reporting company being listed on the Canadian Securities Exchange. The Transaction cannot be completed until these conditions are satisfied. There can be no assurance that the Transaction will be completed as proposed or at all.The Transaction is expected to be highly-accretive as both companies look to build on their complementary expertise to grow their respective businesses within the United States and Europe.
Canaccord Genuity Corp. acted as financial advisor to FCC and its board of directors. Gowling WLG (Canada) LLP and Irwin Lowy LLP acted as legal advisors to FCC. Fiore Management & Advisory Corp. acted as financial advisor to TBI and its board of directors. Cassels Brock & Blackwell LLP acted as legal advisor to TBI.