MJ Harvest Inc. has signed a Letter of Intent (LOI) to merge with and into Cannabis Sativa, Inc. After completion of the merger, as per terms mentioned in the LOI, it is expected that MJ Harvest shareholders would own approximately 72% of the surviving company. The LOI anticipates that the surviving company will be Cannabis Sativa, and MJ Harvest won’t exist as a separate corporate entity anymore.
On Wednesday, MJHI stock soared 16.67% to $0.35 with 1.4K shares, compared to its average volume of 11K shares. The stock moved within a range of $0.2795 – 0.3700 after opening trade at $0.37.
MJ Harvest, Inc. Announces a Letter of Intent to Merge with Cannabis Sativa Inc.
Shareholders of MJ Harvest will receive 2.7 shares of Cannabis Sativa common stock for each one share of MJ Harvest common stock held immediately prior to the merger. Both companies have decided upon a maximum 60-day due diligence period on completion of which the companies will execute a definitive merger agreement.
It is expected that the issuance of shares in the merger will be registered with the United States Securities and Exchange Commission. After the merger, there would be approximately 160,000,000 shares outstanding with approximately 44,000,000 shares held by the original Cannabis Sativa shareholders, and approximately 116,000,000 shares held by the MJ Harvest shareholders that receive stock in the merger.
Patrick Bilton, Chairman and Chief Executive Officer of MJ Harvest and Cannabis Sativa President & CEO David Tobias, are certain that the merger will be beneficial for both companies and its shareholders in terms of growth and revenue. Shareholder meeting for the merger should be held in mid-July 2022.
Patrick Bilton, Chairman and Chief Executive Officer of MJ Harvest Inc. summarized his thoughts, “We view this transaction as a key initiative in our growth strategy of building depth, scale, and distribution in our key markets. The resulting entity will be much stronger, and this merger should be a big win for both companies’ shareholders.”
MJHI stock is trading below the 20-Day and 50-Day Moving averages of $0.40 and $0.43 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.46.