VANCOUVER, May 31, 2019 /CNW/ - Pasha Brands Ltd. (formerly, Broome Capital Inc.) ("Pasha") is pleased to announce that it has completed its reverse-takeover transaction (the "Transaction"), pursuant to which it has acquired all of the outstanding securities of the privately held, Pasha Brands Ltd. ("Privco"), Canada's largest craft cannabis brands organization. Pasha expects to commence trading on the Canadian Securities Exchange ("CSE") under the symbol "CRFT" at the market open on Monday, June 3, 2019.
Privco has raised approximately $25 million in the past two quarters and procured some of Canada's most renowned pre-legalization craft cannabis brands. Pasha is now positioned to accelerate its growth with its wholly-owned subsidiary, BC Craft Supply Co. Ltd. ("BC Craft"), which expects to manage the production and processing of craft cannabis under Health Canada's regulatory framework. BC Craft will work with craft cannabis producers in Canada and assist them in obtaining their micro-cultivation licences with Health Canada – a program that began on October 17, 2018, in exchange for a supply contract to purchase the crop a micro-cultivator produces.
Legalization in Canada has left licensed producers scrambling to meet the supply needs of Canadian cannabis consumers. To this day, illicit craft producers are still supplying as much as 90% of the cannabis Canadians are purchasing. Through its subsidiaries, Pasha will be Canada's first all craft licensed producer and will focus exclusively on bringing micro-cultivators into the market. Under the Health Canada framework, each micro-cultivator can legally process approximately 500 kilograms of dried flower per year. For every 100 micro-cultivators BC Craft secures, up to 50,000 kilograms of world-class craft cannabis could be available to the market via Canada's regulated supply chain.
New to the public markets, Pasha and its brands are no stranger to Canada's craft cannabis community. Pasha's ranks include award-winning brands and farmers that have helped establish British Columbia's reputation as home of the world's best cannabis. Trusted by independent growers and supported by an experienced management team and board, the brand is well poised for growth.
Reverse Takeover Transaction
In connection with completion of the Transaction, Pasha delisted from the TSX Venture Exchange, consolidated its outstanding share capital on a two-for-one basis (the "Consolidation") and changed its name to "Pasha Brands Ltd.", following which Privco amalgamated with a wholly-owned subsidiary of Pasha. Following the amalgamation, all of the outstanding securities of Privco were exchanged for securities of Pasha, on a one-for-one basis, and the amalgamated entity became a wholly-owned subsidiary of Pasha.
Following completion of the Transaction, the board of directors of Pasha was reconstituted to consist of Patrick Brauckmann, Hugo Alves, Scott Walters and Rosy Mondin. Patrick Brauckmann has been appointed as Chief Executive Officer of Pasha, and Theo van der Linde has been appointed as Chief Financial Officer.
For further information regarding the Transaction, readers are encouraged to review the listing statement prepared by Pasha in connection with its listing on the CSE, a copy of which is available under the profile for Pasha on SEDAR (www.sedar.com).
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the proposed commencement of trading on the Canadian Securities Exchange. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Pasha disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Pasha Brands
Based in Vancouver, British Columbia, Pasha is a vertically integrated organization that is firmly rooted in BC's craft cannabis industry, which boasts an international reputation. With proven capabilities in cannabis cultivation, genetic research and development, product, processing and retail, Pasha is uniquely positioned in the new legal cannabis market through its network of hundreds of craft cannabis suppliers under the Pasha umbrella.
Pasha's subsidiary, BC Craft Supply Co. Ltd., is developing a craft cannabis campus, which is dedicated to bringing craft quality into the newly legal cannabis market in Canada. BC Craft Supply Co. Ltd. is driven to assist craft growers in obtaining security clearance and licensing to grow as micro-cultivators, specializing in education and compliance to bring growers into the regulated cannabis supply market.
For more information, please visit www.pashabrands.com.
SOURCE Pasha Brands Ltd.
For further information: Media & Investor Relations Contact: Emerald Asuncion, [email protected], (236) 521-5135