DENVER--(BUSINESS WIRE)--MJardin Group (“MJardin” or the “Company”), a leader in North American cannabis facility management, today announces that it has engaged Canaccord Genuity Corp., to act as sole bookrunner, together with KES 7 Capital Inc. as co-lead agent (collectively, the “Agents”), to sell, on a best efforts private placement basis, pursuant to applicable prospectus and registration exemptions, subscription receipts of MJardin Group (the "Subscription Receipts") to raise equity capital (the “Offering”) to accelerate the Company’s expanding growth opportunities.
The Offering will be completed in conjunction with the previously announced proposed reverse take-over of Sumtra Diversified Inc. (the “Transaction”) and proposed listing of the resulting issuer’s common shares on the Canadian Securities Exchange (the “CSE”).
A highly-experienced cannabis management company with an industry-leading track record, MJardin-managed licensed facilities have collectively produced and sold more than 100,000 kg of cannabis to date. MJardin is a profitable company with strong cash flow, executing a high-growth, recurring revenue model from operations in the U.S. and long-term international royalties through its exclusive relationship with Toronto-based GrowForce Holdings Inc.
“This capital raise will broaden an already strong shareholder base and provide incremental capital to further accelerate our growth,” said Joann Bailey, President of MJardin. “MJardin currently operates with a strong balance sheet, and this capital raise, along with the closing of the Transaction, will allow us to efficiently access the public equity markets, accelerate our acquisitive growth and capitalize on the significant opportunities in the fast-growing U.S. and international cannabis markets.”
MJardin has developed a comprehensive turnkey cannabis management platform, including proprietary software and staff training, that optimizes and de-risks commercial cannabis operations for cultivation, processing and retail facilities. The Company has a proven track record of operational excellence in 13 U.S. states, Canada and Australia, having designed and planned more than 100 legal cannabis facilities since inception with 30+ licensed facilities currently under management.
As previously announced in April 2018, MJardin spun-off an international company, GrowForce Holdings Inc., with a mission to become one of the premier vertically-integrated cannabis platforms globally outside of the U.S. GrowForce recently announced that it has entered into a license agreement with MJardin for the exclusive rights to its cannabis management services and intellectual property portfolio in international markets.
“MJardin’s proven turnkey management system includes our data and R&D-driven approach to maximize facility utilization and return on invested capital,” added Bailey. “We have consistently demonstrated our ability to increase facility output, drive operational efficiencies with minimal capital outlay, and operate the most efficient and profitable cannabis facilities in the industry.”
“The significant challenges that current cannabis license holders face to operationally scale their single or multi-asset platforms create virtually unlimited demand for MJardin’s institutional approach and an overall opportunity to consolidate certain key U.S. markets as a principal,” said Rishi Gautam, Executive Chairman of MJardin. “This macro trend is set to continue and likely accelerate as the regulated markets further expand. MJardin has significant capital and operational expertise to execute on a high-growth business model through acquisitions in certain U.S. markets which meet MJardin’s rigorous internal criteria, and from royalty and management fees in various international markets through MJardin’s exclusive arrangement with GrowForce.”
About MJardin Group
MJardin Group is a highly specialized professional management company that develops partnerships with licensed operators. MJardin provides its partners turnkey cannabis cultivation, processing and retail solutions including licensure support, facility design, systems implementation, facility ramp-up and the day-to-day operational management required in a large-scale, professionally managed cannabis facility. MJardin is headquartered in Denver, Colorado with an additional office in Toronto, Ontario. For more information, please visit www.mjardin.com.
The CSE has not in any way passed upon the merits of the Offering, the Transaction or the listing of the common shares of the resulting issuer, and has neither approved nor disapproved the contents of this news release. Approval of the CSE for the listing of the resulting issuer shares will be subject to, among other things, the resulting issuer satisfying the listing requirements of the CSE. There can be no assurance that the approval of the CSE regarding the listing of the resulting issuer shares will be obtained.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This news release contains forward-looking information based on current expectations. Statements about, among other things, the closing of the Transaction, expected terms and conditions of the Transaction, future developments and the business and operations of the resulting issuer, the completion, terms and size, and use of proceeds of the Offering and listing on the CSE are all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such factors include, but are not limited to: the ability to find suitable subscribers for the Offering and the parties’ ability to satisfy various closing conditions of the Transaction, including receipt of all regulatory and shareholder approvals. Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that the Offering or the Transaction will occur or that, if the Offering and Transaction do occur, they will be completed on the terms described above and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. MJardin assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.