Franchise Cannabis Corp. entered into a non-binding letter of intent to acquire Newton Energy Corporation (TSXV:NTN.H) in a reverse merger transaction.

Franchise Cannabis Corp. entered into a non-binding letter of intent to acquire Newton Energy Corporation (TSXV:NTN.H) in a reverse merger transaction on June 7, 2019. Upon successful completion of tTransaction, the resulting issuer will carry on the business currently carried on by Franchise.

In connection with the proposed transaction, Newton Energy will be required to change its name to a name requested by Franchise and acceptable to applicable regulatory authorities and replace the Directors and officers on closing of the proposed transaction with nominees of Franchise. Completion of the proposed transaction is subject to a number of conditions, including the negotiation and signing of a definitive agreement, receipt of all necessary security holder and regulatory approvals, approval from the NEX Board of the TSX Venture Exchange (the “NEX”) for the delisting of the common shares of Newton from the NEX and conditional approval of the Canadian Securities Exchange for the listing of the common shares of Newton following completion of the proposed transaction.