Enertopia Corp. (OTC: ENRT), an aspiring licensed producer of medical marijuana under Canada’s MMPR program, recently announced the termination of its joint venture with World of Marihuana. The company plans to provide an update on its current operations and outreach initiatives within the medical marijuana industry over the coming weeks.
In conjunction with the termination, the company has relinquished its 31% interest in the joint venture and no longer has any obligations under the agreement. World of Marihuana has also returned 15,127,287 shares of ENRT’s common stock, which were subsequently returned to the treasury and canceled. Mathew Chadwick has also resigned from the company’s Board of Directors.
The news shouldn’t come as a shock to investors given Enertopia’s September 18th announcement that World of Marihuana was allegedly in default on its agreement.
While the news surrounding the World of Marihuana joint venture certainly isn’t ideal, the company is fortune to have additional late-stage projects aimed at securing licensed producer status under Canada’s MMPR. The company’s Burlington JV with Lexaria Corp. (OTC: LXRP) has submitted its application and requested a ready-to-build letter from Health Canada.
The company’s Green Canvas JV has also submitted its application and is in correspondence with Health Canada with respect to specific quality assurance reports. With facility upgrades ongoing at the project, Enertopia’s management were on-site in early October and have indicated that they will provide an update on the project’s status over the coming weeks.
The return of the 15,127,287 shares of ENRT’s common stock reduces the overall number of outstanding shares by approximately 16.7% to 75,743,460.
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