Little Green Pharma postponed a vote on its planned merger with Cannatrek this week as several conditions to the deal have yet to be met.
Shareholders of LGP were due to meet on Wednesday to vote on the transaction which, if approved, will see the WA-based firm acquire 100% of Cannatrek.
In an announcement this morning, LGP said both companies agreed to postpone the ‘share consideration resolution’ until May 22. It stressed the deal is still expected to proceed.
Cannatrek shareholders approved the deal earlier this month.
“The scheme is subject to a number of conditions precedent [and] several conditions remain outstanding,” LGP said in a statement.
“The company and Cannatrek have agreed to postpone the consideration of the scheme resolution to allow the parties to satisfy the remaining conditions precedent. The parties do not anticipate any issues in achieving satisfaction of these conditions.”
The announcement did not disclose which of the conditions had yet to be met.
Among the conditions include Cannatrek having aggregate net cash and receivables of no less than $19 million on the morning of a second court date to approve the deal, and that there are no material changes at either company.
LGP said it will make a further announcement regarding the transaction prior to next month’s rearranged meeting.
