Little Green Pharma has delayed a vote on its proposed merger with Cannatrek after a number of conditions attached to the agreement were not yet fulfilled.
LGP shareholders had been scheduled to convene tomorrow to cast their votes on the transaction, which would see the Western Australian company acquire 100% of Cannatrek if passed.
In a statement released this morning, LGP confirmed that both parties had agreed to defer the 'share consideration resolution' to May 22, while emphasising that the merger is still expected to go ahead.
Cannatrek shareholders approved the deal earlier this month.
"The scheme is subject to a number of conditions precedent [and] several conditions remain outstanding," LGP said in a statement.
"The company and Cannatrek have agreed to postpone the consideration of the scheme resolution to allow the parties to satisfy the remaining conditions precedent. The parties do not anticipate any issues in achieving satisfaction of these conditions."
The announcement gave no details on which specific conditions had not yet been satisfied.
The conditions attached to the deal include a requirement that Cannatrek hold aggregate net cash and receivables of no less than $19 million on the morning of a second court hearing to approve the scheme, as well as a provision that no material adverse changes occur at either company.
LGP said it would release a further update on the transaction ahead of the rescheduled meeting next month.
