New Age Farm Inc COM NPV (OTCMKTS:NWGFF) has recently issued an update on its plan of arrangement with NHS Industries Ltd.
Plan of Arrangement
“New Age Farm intends to spin out NHS as a separate operating company for a number of reasons that include, but are not limited to, the ability to list NHS on a stock exchange to build greater shareholder value in the Company’s Canadian assets,” noted the company.
Moreover, spinning out NHS Industries will strengthen the company’s focus on its marijuana production facilities in the US. The move will also allow New Age Farm to take advantage of the possibility of a recreational marijuana legislation in Canada. In general, it will put the company at a better position to carry out its growth strategy.
The companies have agreed upon the share distribution date being November 30, as of which, New Age Farm has 105.57 million issued and outstanding common shares.
Existing New Age Farm shareholders will continue to hold the same number of common shares they have prior to sealing the agreement between the two companies. Moreover, they will receive the same number of common shares from NHS Industries multiplied by a conversion value. Accordingly, a New Age Farm share is equivalent to 0.065195 NHS Industries share. Consequently, existing New Age Farm shareholders will be entitled to 0.065195 NHS Industries share per New Age Farm share they own as of November 30.
It is important to note that the share distribution date has only been set to determine who will receive the distributed shares from NHS Industries as part of the agreement between New Age Farm and NHS Industries.
Plan of Arrangement Effective Date
The companies have also agreed that the plan of arrangement shall take effect on December 31. This means that the shareholders entitled of the distributed shares from NHS Industries will receive their respective shares starting on January 1 subject to the completion of certain requirements.
The shareholders entitled to the distributed shares can receive their shares directly via mail of a certificate or a registration statement; or indirectly through their respective brokerage accounts.
On Monday, New Age Farm has closed at $0.11.