Shares in PhytoTech Medical Limited (ASX:PYL)
rose 11.5 per cent yesterday after announcing a merger of equals with Canada’s MMJ Biosceience Inc.
The transaction will see PhytoTech acquire 100 per cent of the issued capital of MMJ to create a global vertically integrated medical cannabis company.
The deal consideration is $15.5 million of PhytoTech’s scrip, based on its last traded price, and an extra $5.2 million in performance shares based on meeting milestones.
PhytoTech expects the combined entity to be involved with the production, research, development and distribution of medical cannabis products.
PhytoTech Medical was the first medical marijuana company to list on the ASX in January 2015.