Medbright AI Investments Inc (MBAIF)

[lithiumjr]

This morning, Vinergy “MJ Biopharma” (CSE: VIN & OTCQB:VNNYF) announced that it has signed on LOI to Acquire a Majority Stake in a Multinational Plant Breeder with $14M in Annual Sales & an EBITDA of over $2M

News Key highlights:

1) Today’s news release comes after the company announced the commencement of shares trading on the OTCQB Venture Marketplace under the symbol VNNYF. Thus allowing for increased accessibility and visibility with U.S. investors.

2) This morning the company officially announces their entry in the global cannabis industry as a major diversified player with Global reach. As well it positions them as one of highest revenue generating companies in this space. This deal will also make Vinergy is amongst the most profitable companies in the Cannabis industry. Similar Canadian comparables are trading at several multiples of their future revenues.

3) The Deal:
- The LOI is for a majority stake (51%) in a European multinational plant breeder.
- The deal is expected to close in tranches, with the first being in Q1-2017.

4) The Target company:

- The target is a European multinational Company.
- With audited annual sales in excess of CAD $14M and EBITDA of over $2M.
- A world leader in the development of plants and plant genetics.
- Has a long established history and has been providing commercial agriculture services for over 25 years to global customers.
- In the past year alone, they shipped over 35M plant products internationally.

5) Strategic Plan and Synergy

- This transaction fits perfectly with the direction VIN is pursuing.

o On Jan 18, 2017, VIN announced the appointment of a Scientific Advisory Board Chair to Pursue Clinical Testing of Cannabinoids for Therapeutics and emphasized that it is an important part of the Company’s strategy to develop, test and identify specific cannabinoid isolates for targeted therapeutic purposes.

- Together with VIN, the Target currently has the capacity to expand rapidly into the hemp, cannabis and cannabinoid (CBD) sectors across Europe.

o Europe’s market potential for CBD is estimated to be €2 billion.
o The total U.S. CBD market is estimated to grow to a $2.1 billion market in consumer sales by 2020.

- As part of the acquisition, VIN now has access to an extensive catalogue of over 2000 hemp and cannabis strains with the ability to supply those strains to customers globally.

6) Plan Forward

- VIN’s goal is to control every step of the production process, from genetics, right through to extraction, ensuring only the highest quality extracts are used in the formulation of their products (strips, time release capsules and other products currently under development for the medical and recreational cannabis space)

- VIN has stated that, with this acquisition, they plan to immediately roll out several new hemp and CBD initiatives.

- With a main goal of taking a leading market position in the global CBD market, VIN will remain diversified and will capitalize on and further develop the multiple complimentary and recurring revenue streams already established by the target company.

- VIN will aim to work with large growers to gain access to multiple markets and distribution verticals worldwide, thus ensuring that VIN will work towards being the supplier of choice for companies seeking access to the largest and finest catalogue of cannabis strains globally.

Link to news: http://www.marketwired.com/press-release/vinergy-resources-mj-biopharma-acquire-majority-stake-multinational-plant-breeder-with-cse-vin-2192979.htm