Latest News
Savanna Capital Proposes Acquisition of Colombia-Based Varianz
Wednesday 12 June 2019

12 June 2019 - Canada-based capital pool company Savanna Capital Corp. (TSX Venture: SAC.P) has entered into a binding letter of intent with Colombia-based biotech company Varianz Corp., existing under the laws of the Province of Ontario, outlining the general terms and conditions pursuant to which Savanna and Varianz Corp have agreed to complete a transaction that will result in a reverse take-over of Savanna by the current shareholders of Varianz Corp., the company said.
The agreement was negotiated at arm's length and entered into as of May 30, 2019.
Savanna has no material liabilities, approximately USD 200,000 in cash, 4.6m common shares and 443,200 options issued and outstanding.
Prior to the completion of the Transaction, Savanna will complete a non-brokered offering of 8m common shares at a price of CDN 0.10 per share for gross proceeds of approximately CDN 800,000.
Prior to the completion of the Transaction, it is anticipated that Varianz Corp will complete a non-brokered private placement of approximately 16m units (target units) at a price of CDN 0.05 per Target Unit for gross proceeds of approximately CDN 800,000 (USD 600,950).
Upon completion of the Varianz offering, Varianz Corp will have approximately 156m common shares and 16mTarget warrants issued and outstanding.
Two principal shareholders of Varianz, Ribagorza Investment S.A. and Landsons Investments Corp. (both Panamanian companies) are each expected to own approximately 30% of the common shares of the Resulting Issuer after giving effect to the transaction, but before any subsequent financings, and therefore each is expected to become an insider of the Resulting Issuer by virtue of its shareholdings.
Varianz Bio Lab S.A.S, a wholly owned subsidiary of Varianz Corp. is a biotechnology company focussed on the medicinal cannabis industry, with headquarters in Bogotá, Colombia.
The company plans to establish a vertically integrated operation to control a broad-scope value chain process from planting to processing cannabis, and ultimately producing high-quality medical cannabis oil extracts and other derivative products with rich CBD content.
Varianz Bio Lab is positioned to continue the expansion of its operations and commence cultivation of cannabis and production of medicinal cannabis oil extracts on its approximately 20 hectares of lands located in Flandes, Tolima, Colombia. Varianz Bio Lab has the ability to expand its cultivation and production operations to include 200 additional hectares at the same location as the Varianz Lands.
Date Published: 12/06/2019
Target: Varianz Corp
Country: Colombia
Deal Size: .6m (USD)
Sector: Biotechnology
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Buyer: Savanna Capital Corp