Iconic Canadian rock group The Tragically Hip will partner with Newstrike Resources Ltd. (TSXV: HIP) and become “significant investors”
SmallCapPower | June 1, 2017: Newstrike Resources Ltd. (TSXV: HIP) shares surged 186% to $0.415 on Thursday as the former minerals exploration company resumed trading following its merger with HPI Holdings Ltd., a company engaged in the production of medical marijuana in Brantford, Ontario.
Newstrike Resources had historically been focused on precious and base metals and other minerals exploration in Canada and the United States, holding a 25% interest in the Sweetheart Property located in Wyoming. Newstrike has not undertaken any exploration on its mineral properties in the past two years.
The newly-merger company Newstrike will initially focus on the production and distribution of cannabis with a goal of expanding its existing production space as well as acquiring complementary production and manufacturing facilities.
Newstrike Resources gained a bit of national attention in Canada when they revealed that iconic Canadian rock group The Tragically Hip would partner with the Company and become “significant investors” in Newstrike Resources. According to the agreement, The Hip and its members will get 2.5% of gross revenues “from the sale of products bearing the brand or likeness of The Tragically Hip,” and also received three million shares in the Company, plus “a non-refundable advance payment against future royalties of $1 million.”
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