01:40 PM EDT, 06/27/2024 (MT Newswires) -- Ayurcann Holdings ( AYURF ) , a Canadian cannabis extraction company, on Thursday agreed to be acquired by Arogo Capital Acquisition, (AOGO), a special purpose acquisition company, to form a combined enterprise value estimated to be US$210 million.

"At the effective time of the transaction, shareholders of Ayurcann ( AYURF ) immediately before the effective time will receive shares of common stock of the publicly traded entity at $10 per share. Ayurcann's ( AYURF ) common shares are expected to be valued upon closing of the proposed deal at about $1 based on the current number of fully diluted outstanding common shares before consolidation to be completed in connection with the proposed transaction," Ayurcann ( AYURF ) said.

At the closing of the proposed deal, Arogo expects to have up to US$19.6 million in cash on its balance sheet, including existing cash brought over from Ayurcann's ( AYURF ) balance sheet, any capital raised in connection with the deal, and expected cash proceeds from Arogo's trust account. The proceeds are expected to be used to support general business activities.

The transaction is expected to close in the second half of 2024.

The board of Ayurcann ( AYURF ) recommended that Ayurcann ( AYURF ) shareholders approve the deal at a meeting expected to be held in the third quarter.