Importantly, while under the escrow arrangements entered into at the time of the November capital raise, Ray's decision to step down from the Board triggers the release provisions for the escrowed shares
held by his related entities.
In the event that an approval is not able to be obtained within 24 months following the execution of definitive documentation, the parties shall will use commercially reasonable efforts to transition such license to a third party with any such proceeds going to the company and any related escrowed shares
released to PharmaCann unitholders.
46,799,113 of the Shares (Escrowed Shares) were subject to the Voluntary Escrow Deed previously detailed in the Companys Notice of Annual General Meeting dated 15 June 2017 (which meeting was held on 18 July 2017) (AGM Notice) and attached to the Companys Notice of Initial Substantial Holder (ASIC Form 603) dated 20 July 2017.
Approval was granted by the Company for Kam Lung to transfer the Escrowed Shares to Beijing Jinhong Investment and Development Co., Ltd (Beijing Jinhong), a company wholly owned and controlled by the Companys director Mr HuiHai Zhuang, with no change in relevant interest.
The company said that 600,000 of the escrowed shares will be released once Foro reaches a minimum of 25,000 regular users of Foro and the remaining 600,000 escrowed shares will be released once Foro reaches 50,000 regular users of Foro.
If the milestones have not been achieved within 12months of closing of the acquisition of Foro, all escrowed shares not yet released will be cancelled.