Licensed ganja company, Kaya Inc, has announced that the entity will be releasing its IPO soon, which will be listed on the Toronto Stock Exchange (TSX) in Canada. Kaya also intends to do a ‘reverse takeover’ of Buzz Capital, a company already listed on the TSX. Buzz Capital was formed in 2017 and listed on the TSX that same year.
Kaya plans to raise CAD$8.5 million from the merge. CAD$5.5 million is hoped to come from institutional investors while CAD$3 million will be given by HIKU Brands, who has already committed to that agreement. The deal which should be completed by April 15, will see Kaya shareholders owning almost nine-tenths of Buzz Capital.
The takeover involves a series of transactions which includes Buzz reducing its ordinary shares by half from 8.2 million to 4.1 million units. After which, the company’s name will be changed to Kaya Inc. Following the name change will be an exchange of all issued and outstanding shares of Kaya for common shares of the resulting entity.
Subsequently, Kaya will warrant for shares of the new company. The resulting entity should have 43 million issued shares. Kaya shareholders will own 89 percent while Buzz shareholders will hold 11 percent.
Kaya made it clear that this transaction will be subjected to the oversight and approval of the Cannabis Licensing Authority in Jamaica. Kaya has announced that there will also be over 50 percent of Jamaican shareholders and Board Directors at all times.
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