JERSEY-based medicinal cannabis producer Northern Leaf has said it had “no choice but to pursue alternative options” after fundraising efforts for its proposed merger with Scottish CBD firm Voyager fell short.
It emerged this week that the deal would no longer be going ahead, with Voyager stating it was clear that the fundraising process was unlikely to be completed in time.
In a creditor’s update, Northern Leaf said it had “no choice but to pursue alternative options when the fundraising bookbuild remained at less than half the required amount of £2m necessary to complete the proposed merger after three weeks of marketing”.
Northern Leaf chief executive Geoff Eyre said the Jersey grower had since entered into a contract with “an established industry player” for the sale of existing inventory in the sum of 286,350 euros – with further finished product expected to be sold for 78,000 euros.
“In parallel with this sale, the company is negotiating the additional funding required to meet planned payments to key suppliers and creditors during April,” he added.
“The company is working with this established group to agree the funding requirements necessary to maintain Northern Leaf as a going concern through to August 2024, during which time the full terms of the acquisition of Northern Leaf can be negotiated.
“They want to keep the business alive and ultimately acquire it.”
