On the back of its previous statement that it would explore strategic alternatives for its international assets, Wayland Group (MRRCF) announced today that it signed a letter of intent to sell 49.9% of its international portfolio of assets to ICC International Cannabis (KNHBF).
The deal says that Wayland will receive 300 million shares of ICC International Cannabis at a price of $0.43 per share, which would value Wayland’s international business at $258 million. The transaction values Wayland’s international business at a 13.3% premium to the market capitalization of Wayland’s entire global business based on its January 14 closing price.
However, Wayland’s shareholders have to wait at least six months from the completion of the transaction to receive ICC International Cannabis stock. The transaction, which is expected to close by March 1, 2019, is subject to regulatory, legal, and shareholder approval.
Other details of the transaction
Upon the completion of the deal:
- Wayland has to supply 10,000 kilograms of EU-GMP certified products to ICC International Cannabis every year for the next three years.
- ICC International Cannabis will gain access to Wayland’s German advisory board to get guidance on various matters including the penetration of new markets.
- Wayland’s international business will be operated as a subsidiary jointly owned by Wayland and ICC International Cannabis.
Wayland Group has started 2019 on a brighter note. As of January 14, its stock has increased 58.2% YTD. During the same period, peers MedMen Enterprises (MMNFF), Acreage Holdings (ACRGF), and Planet 13 Holdings (PLNHF) have returned 15.2%, 21.0%, and 24.7%, respectively.