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This article was published 17/3/2017 (1281 days ago), so information in it may no longer be current.

Winnipeg’s only licensed medical marijuana producer, Delta-9 Bio-Tech, is in the process of securing a public listing on the TSX Venture exchange through a reverse takeover of a former mineral exploration company.

A letter of intent has been signed with SVT Capital Corp. that would see Delta-9 do a reverse takeover of that company. The process would include raising more than $6 million through a combination of new debt and equity.

The reverse takeover and the capital raise could take between four and eight months to complete. John Arbuthnot of Delta-9 said getting a public listing will help the company’s effort to access capital to fund growth.

"This is the best way to position the company in terms of being able to approach the impending legalization event that we may see over the next one to two years," Arbuthnot said.

He said the other Canadian marijuana companies that are publicly listed have shown they can raise money quickly in response to the changing market. "We feel we need to be in that space as well," he said.

Under the terms of the letter of intent, Arbuthnot and his partner — his father Bill Arbuthnot — are to retain majority control of the company.

He said the injection of $3 million in new capital into the Winnipeg operations would mean significant expansion of production. Delta-9 is projected to do about $1.7 million in sales this year from a patient list of about 1,500 people.

The company is in the process of building a medical marijuana counselling clinic in Osborne Village that’s slated to open this spring.

martin.cash@freepress.mb.ca