RGI 0.00% 4.8¢ roto-gro international limited

Ann: Market Update, page-21

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  1. 1,540 Posts.
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    "My stance is not one of concern, rather one of keen interest in the first licence being issued in RGIs name or if maintaining the Supra brand then its first renewal under new ownership."

    From RGI's announcement:
    RotoGro to acquire 100% of the issued share capital of Supra THC from Valens GroWorks Corp. (“CSE:VGW”

    So as far as Health Canada or other authorities are concerned, the license is issued to Supra who satisfy all the licensing requirements. Who owns Supra is immaterial, in fact Supra was a seperate company until Valens took it over thus acquiring the license a few years ago.

    Rotogro now own Supra, I don't know, however I suspect they'll keep it as an entity (100% owned by RGI) but transfer the license to their new premise.

    This sort of thing happens all the time, in almost every M&A takeover, the company being taken over has various licenses whether mining or whatever. The license holder just becomes an entity owned by the parent.

    An example, when Qantas took over Australian Airlines (TAA) it acquired AA's AOC & other licenses, nothing could be more complex than taking over aviation licenses.
 
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