Red Oak Mining Corp. set to acquire vaporizer company CB Holding … – Proactive Investors USA & Canada

Budding news for Red Oak Mining Corp. (CVE:ROC.H), which announced today that it has signed a letter of agreement with CB Holding Group Corp (CBH). 

CBH is a Nevada corporation that will focus on the design, formulation, infusion through proprietary process and sale of vaporizer pens in California. CBH will operate through a wholly-owned California subsidiary and a wholly-owned Nevada subsidiary. 

Red Oak and CBH plan to enter into a definitive share exchange agreement where all outstanding shares of CBH will be exchanged for securities of Red Oak, constituting a reverse takeover by CBH and a change of business of the corporation from mining to the production and sale of vaporizers for cannabis and CBD.

The company said when the transaction is completed, it plans to change its name and to delist from the TSX Venture Exchange and list on the Canadian Securities Exchange. 

Financing details

Red Oak expects to issue to the shareholders of CBH a total of approximately 67,334,902 common shares in exchange for 100% of the outstanding shares of CBH.

Red Oak announced a “part and parcel” private placement, which will consist of issuing up to 1,000,000 Red Oak units at a price of $.30 per unit for gross proceeds of up to C$300,000.

The company said each unit will comprise one common share of the corporation and one full common share purchase warrant, which will entitle the holder to acquire one additional common share at an exercise price of C$0.50 for a period of three years. Securities issued will be subject to a four-month and one day statutory hold period. 

The firm said it plans to use the proceeds from the placement to fund the transaction and for general working capital. 

About CBH

CBH is a special purpose vehicle formed on June 29, 2018. CBH’s business

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