The Merger: A New Vehicle
Alternative Energy Partners, Inc. ("AEGY") has advised us that it has agreed in principal to merge with or be acquired by a Canadian company listed on the Canadian Stock Exchange, with a dual listing on the Frankfurt Exchange to be applied for thereafter, and a letter of intent has been received by the AEGY and nearly all of the terms have been agreed and approved by the Board of Directors of the AEGY. The letter of intent is expected to be signed no later than Monday, June 23, 2014, followed by the preparation of a definitive acquisition agreement. This transaction should be completed in the next 4 to 6 weeks, and will position AEGY and SKTO to undertake regulatory testing and approval of their cannabis-based products in Canada, where regulatory standards for cannabis-related product testing are more encouraging. It will also result in a more orderly trading market for the common shares of the companies, which will help to end some of the trading difficulties currently faced by the Company's shareholders. Once the transaction with the Canadian public company has been closed, it is intended that the previously announced merger between the Company and AEGY will be completed in the Canadian public company, such that one entity will move forward from the two companies. The boards of directors of both companies have approved this transaction.
Specific details of the planned acquisition transaction and its effect on the Company and its shareholders will be provided as soon as the definitive acquisition agreement has been signed, but the Company will update shareholders when the letter of intent has been signed. Rest assured that we will continue to move forward with maintaining any requisite regulatory filings and we will audit our financials if and as required to do so.
