VANCOUVER, BC, June 20, 2019 - Cannex Capital Holdings Inc. (CSE: CNNX) (OTCQX: CNXXF) (“Cannex” or the “Company”) is pleased to provide an update on the closing of its proposed business combination (the “Transaction”) with 4Front Holdings, LLC (“4Front”). As previously disclosed, the Transaction was overwhelming approved by shareholders who voted at a special meeting of securityholders held on April 18, 2019. Additionally, the Canadian Securities Exchange (the “CSE”) has conditionally approved the resulting issuer for listing. Trading will continue as Cannex until the Transaction has been completed, at which time the CSE will issue a bulletin announcing the listing of 4Front Ventures Corp.
Cannex and 4Front are proceeding with their planned business combination, with an expectation that the Transaction will close by July 31, 2019. Upon substantive review of 4Front’s and Cannex’s filings pursuant to the Hart Scott Rodino Act (“HSR”), the companies determined that the current business combination is not reportable under HSR and subsequently the parties withdrew their filing with the U.S. Federal Trade Commission. The withdrawal does not preclude the U.S. Department of Justice (“DOJ”) from investigating the business combination to ensure compliance with antitrust laws.
By way of further corporate update, Cannex is intending to report its financial results for the 12-month period ending April 30, 2019 on June 28, 2019. In addition, the delayed closing has afforded Cannex the opportunity to pursue additional administrative pathways which the Company believes could provide a more efficient process for future U.S. filings and retaining foreign private issuer status.
“As communicated previously, it is our view that our business combination transaction faces no material risk of antitrust issues and we remain ready and willing to reasonably cooperate with requests for information from the DOJ,” stated Cannex CEO, Anthony Dutton.
Closing of the Transaction remains subject to final court approval and other customary completion conditions. Upon receipt of final court approval and satisfaction or waiver of all other completion conditions, Cannex and 4Front will make an application to the Supreme Court of British Columbia for the final order in respect of the Transaction. A news release will follow when a hearing of the application for the final order in respect of the Transaction has been scheduled.
Cannex Capital Holdings Inc.
Anthony Dutton, CEO