They won’t tell us why, but the long drawn out change of business deal with MJ Biopharma that was being engaged in by Vinergy Resources (VIN.C) is over as of today.
Vinergy Resources Ltd. has terminated the definitive agreement with 1099955 B.C. Ltd. (doing business as MJ BioPharma, a cannabis technology company) to acquire 100 per cent of MJ BioPharma’s outstanding shares.
Vinergy will now pursue a change of business, as defined in the policies of the Canadian Securities Exchange, pursuant to which Vinergy will be transformed into an investment issuer, which entails:
- The adoption of an investment policy;
- The appointment of an investment committee (the “Investment Committee”);
- The acquisition by Vinergy from several arms’-length vendors of several publicly traded and private investments (collectively, the “Acquisition”). Details of the Acquisition and the corresponding investment portfolio will be provided in a follow-up news release;
- The completion of up to $1,000,000 private placement (the “Private Placement”);
Why did this happen? God, it could be any number of things. MJ Biopharma’s principals may not have passed due diligence, the business case may have not been to the liking of regulators, or the folks bringing it to market may have simply run out of patience with the year long Change Of Business ordeal they were stuck in and may have decided they were missing opportunities elsewhere.
The fact that they’re announcing acquisition talk and a million dollar raise means that last option is most likely.
Following a thorough evaluation of the Company’s existing resources and a review of its strategic options, the Company made a decision to refocus its business operations from a junior oil and gas company to an investment company. The board of directors believe that the current and anticipated cannabis market, its network of business contacts and its depth of investment experience will enable the Company to identify and capitalize on investment opportunities that will bring greater value to the Company’s shareholders.
You know who this is great news for? Lifestyle Delivery Systems (LDS.C), as that company was, at one point, squared off against MJ Biopharma as the two companies racing to bring cannabis strips to market. That space just got a little emptier.
Either way, at least there’s now some clarity to the VIN story, even if that clarity is basically little more than, “We’re working on it.”
So if you, like I do, own Vinergy stock and have been watching it gather dust for the last god knows how long, there’s at least some light at the end of the tunnel. We’ve been told multiple times over the past year that execs expected the COB process to end soon.
It seems like, maybe, it’s just begun. And maybe that’s -now- a good thing.
— Chris Parry
FULL DISCLOSURE: Vinergy Resources was an Equity.Guru marketing client, but the program has been on-hold while the company rejigged. The author owns stock in the company.