Cannabix Technologies Inc. (OTC: BLOZF) (CSE: BLO), developer of marijuana breathalyzers for law enforcement and workplaces, recently announced that it would spin off its remaining gold project, known as the Monster Lake South Gold (“MLS”) property within its wholly-owned subsidiary Torino Ventures Inc. into a separate publicly traded entity.
Under the terms of the spin off agreement, all assets related to the company’s mineral exploration business will be transferred to Torino in consideration for a certain number of shares of common stock. These shares will be distributed to the company’s existing shareholders on a pro-rata basis pursuant to a plan of arrangement under the Business Corporations Act in British Columbia.
Cannabix is finalizing the arrangement agreement with legal counsel and will announce further details in the future. Management believes that the spin off will maximize shareholder value by separately valuing both components of the business, while enabling the team to focus on the development and commercialization of its breakthrough marijuana breathalyzer technology.
The MLS property consists of six claims totaling 112 hectares and contains historical drilling by Homestake Mining (Canada) Ltd. and Westminer Canada Ltd. with anomalous gold-bearing intervals including 5.39 g/t over eight meters. Since the winter of 2012, the region has seen significant exploration activity when TomaGold drilled 2,420 meters and discovered 237.6 g/t over 5.7 meters.
Shares of Cannabix Technologies Inc. rose 2.56% in early trading on Thursday, October 30, 2014 following the news release.
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