Kushtown USA LLC moved further down the trail of becoming an approved publicly-traded entity when it was announced that the company had it entered into a definitive share exchange agreement as of January 25, 2017, with Finore Mining, where Finore has agreed to acquire all issued and outstanding membership interests of Kushtown.
According to the news release, upon closing Finore will pay Kushtown a cash consideration of US$650,000 (an initial cash consideration of US$100,000 has been paid upon signing the letter agreement) and issue an aggregate of 4.0 million common shares in the capital of Finore pro rata to the Kushtown members at a deemed price of $0.15 per Payment share.
Also, in connection with the Transaction, Finore will issue 3.0 million common shares to an arm’s length third party at a deemed price of $0.15 per share and shall grant a 2% net profits interest royalty on all Kushtown branded products sold by Finore as an assignment fee.
The transaction is still subject to customary closing conditions, including necessary regulatory approvals as well as shareholder approvals.