Mydecine To Spin-Out Its U.S. Cannabis Assets By Mid July

Psychedelics and mycology company, Mydecine Innovations Group Inc. MYCO MYCOF (FSE:0NFA), is seeking to increase shareholders value by spinning off its U.S. cannabis assets and its stake in U.S. cannabis projects into a newly formed subsidiary. 

The Denver-based company intends to spin off its holdings of common shares in the subsidiary to its shareholders.

In June 2020 Joshua Bartch, Mydecine's CEO, told Benzinga they were looking for the best way to manage the company's cannabis properties.

"We're looking at what's the best positioning as a company moving forward for those specific assets, whether that potentially could be a spin-out and/or those assets take their own path in your own separate vehicle and/or maybe they operate in a separate division," he said at the time.

Mydecine expects to obtain an interim order from the Supreme Court of British Columbia on or around June 7 and close the transaction on or about the week of July 12, following shareholders' approval.

The move is expected to eventually result in the company's listing on the NASDAQ and London Stock Exchange.

Under the terms of the spin-out, Mydecine shareholders are entitled to common shares of SpinCo on a pro-rata basis based on the number of the company's common shares held.

Once the transaction is finalized, the spun-off subsidiary plans to apply to list its common shares on either the Canadian Securities Exchange or the NEO Exchange.

Mydecine was launched last year through the merger of Mydecine Group, a private fungi research company from Colorado, and New Leaf Brands, a public cannabis company that previously traded under the symbol NLB.

Photo by Timothy Dykes on Unsplash