CALGARY, AB, March 12, 2021 /PRNewswire/ – Top Strike Resources Corp. d.b.a. “Vencanna Ventures” (the “Corporation” or “Vencanna“) (CSE: VENI) (OTCQB: TPPRF) announces that it has entered into a loan agreement dated March 11, 2021 with The Cannavative Group LLC (“Cannavative“), a leading premium cannabis brand in the state of Nevada, whereby Vencanna will loan Cannavative US$2.0 million for facility expansion and general working capital purposes (the “Loan“).
Vencanna is also pleased to announce that it has entered into an exclusive non-binding letter of intent with Cannavative dated January 25, 2021 (the “LOI“), pursuant to which Vencanna will acquire all of the common shares in the capital of Cannavative in an all share exchange through the issuance of an aggregate of 360,000,000 common shares of Vencanna (“Vencanna Shares“) at a deemed issuance price of US$0.05 per Vencanna Share (the “Transaction“). The Transaction will be completed pursuant to a share purchase, take-over bid, or other similar structure or statutory procedure under the laws of Nevada. The Transaction is subject to, among other things, the execution of a definitive agreement between Vencanna and Cannavative (the “Definitive Agreement“) and customary closing conditions. The Transaction is expected to constitute a “Fundamental Change” pursuant to the policies of the Canadian Securities Exchange (the “CSE“) and is subject to the acceptance of the CSE and the approval of shareholders of Vencanna. Shareholders holding not less than 50% plus one Vencanna Share of the issued and outstanding Vencanna Shares will approve the Transaction by way of written resolution.
It is anticipated that the Definitive Agreement will be executed as expeditiously as possible, and the Transaction is expected to be completed in the summer of 2021. Pursuant to the LOI, Cannavative has agreed to deal exclusively with Vencanna with regard to the Transaction.
The all-share transaction closely aligns