Becoming a cannabis operating company will require the Company to complete the following, among other things:
- Obtain shareholders’ approval. The Company anticipates obtaining such approval by way of a consent resolution of existing shareholders holding at least 50% plus 1 of the Company’s currently outstanding common shares, or by holding a special meeting of shareholders in accordance with applicable regulations;
- Prepare and file a new listing statement with respect to its new proposed business;
- Meet the criteria for a new listing as a cannabis company on the CSE and make a complete initial application to qualify for listing by filing all necessary documents; and
- Obtain the consent of the CSE to the Company’s proposed COB and listing as a cannabis operating company.
Further to the Company’s press on May 23, 2018, the Company is in the process of completing a private placement to fund the roll-out of the new business plan, the costs associated with the COB and for general working capital purposes. Completion of the COB remains subject to meeting a number of Exchange requirements, including securing sufficient capital to achieve the objectives that will be set out in the listing statement. There is no assurance that the Company will be able to secure the capital on favorable terms or secure the requisite approvals to complete the COB as described in this press release.
While the Company is looking to augment its management team, it does not expect that there will be significant changes to the Company’s board and management teams prior to or concurrent with completion of the COB, if approved by the CSE. The current board of directors comprises of James Trusler, Gary Galitsky, Robert Schwartz, Graham Warren and Lorne Burden.
The Company also does not expect that any shares will be subject to any escrow restrictions as a result of the COB.
The Company will seek to change its name to more accurately reflect its new cannabis company business, but no new name has been selected at this time.
Until the COB is completed, the Company will remain a mineral exploration issuer and the Shining Tree Property will remain the Company’s principal asset. If the COB is approved, the Company will evaluate various ways of maximizing the value of the Shining Tree Property through a sale, spin-off or a farm-out to a third party.
Following the COB (if approved by the CSE and the shareholders) Platinex intends to find another facility to operate in and apply for reinstatement of IGF’s OLCC processors license.
The Company wishes to inform shareholders that there are significant legal restrictions and regulations that govern the cannabis industry in both Canada and the United States. The concepts of “medical cannabis” and “recreational cannabis” do not exist under U.S. federal law. The Federal Controlled Substances Act classifies “marihuana” as a Schedule I drug. Under U.S. federal law, a Schedule I drug or substance has a high potential for abuse, no accepted medical use in the United States, and a lack of safety for the use of the drug under medical supervision. As such, cannabis related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. federal law. Strict compliance with state laws with respect to cannabis will neither absolve the Company of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. Enforcement of U.S. federal laws will be a significant risk to the business of the Company following the completion of the acquisitions, and any such proceedings brought against the Company may adversely affect the Company’s operations and financial performance.
Further information regarding the legal status of cannabis related activities and associated risk factors, including, but not limited to, risk of enforcement actions, risks that third party service providers, such as banking or financial institutions cease providing services to the Company, and the risk that Company may not be able to distribute profits, if any, from U.S. operations up to the Company, will be included in the Form 2A listing statement to be filed with the CSE.
Platinex is currently focusing efforts on developing various strategies to capitalize on the lucrative growth of the cannabis sector in North America. At the same time Platinex has been focusing its mining business efforts in assembling a very large property in the Shining Tree gold camp, which has received little modern exploration compared to other gold camps in the Abitibi greenstone Belt. Shares of Platinex are listed for trading on the Canadian Securities Exchange under the symbol “PTX”.
| David Posner | or | Lori Paradis |
| Investor Relations Consultant | Corporate Secretary | |
| 647-985-6727 | 416-268-2682 | |
| Email: dposner44@gmail.com | lparadis@platinex.com | |
| And | ||
| mention “Platinex press release” on the subject line. |
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