Current Report Filing (8-k)
October 16 2018 - 2:10PM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest reported):
October 10, 2018
Novo
Integrated Sciences, Inc.
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(Exact
name of small business issuer as specified in its charter)
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Nevada
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333-109118
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59-3691650
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(State
or other jurisdiction
of
Incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
Number)
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11120
NE 2nd Street, Suite 200, Bellevue, WA 98004
(Address
of principal executive offices)
(206)
617-9797
(Registrant’s
telephone number, including area code)
N/A
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.)
[ ]
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CF$ 240.13e-4(c))
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Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company [ ]
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item
1.01. Entry into a Material Definitive Agreement.
On
October 10, 2018, Novo Integrated Sciences Inc. (the “Company”) and Novo Healthnet Limited (“NHL”), a
wholly owned subsidiary of the Company, executed a binding letter of intent (“LOI”) with CannaPiece Group Inc. (“CannaPiece”).
Pursuant to the terms of the LOI, NHL and CannaPiece will enter into a joint venture relationship with CannaPiece and CannaPiece
will invest in the Company. The Company and CannaPiece also agreed to enter into a share exchange agreement resulting in each
of the Company and CannaPiece having an interest in the other company.
Pursuant
to the terms of the LOI, the parties agreed to the following:
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1.
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CannaPiece will purchase from the Company CAD $5,000,000
(approximately USD $3,868,988 as of October 16, 2018) worth of the Company’s shares. The share
price will be determined by a 30-day closing average based on the 30-day period ending on October 10, 2018 and the application
of a market acceptable discount to the determined average.
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2.
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CannaPiece, the Company and NHL will enter into a share exchange
agreement pursuant to which (a) NHL will own or control 25% of CannaPiece’s common stock, and (b) CannaPiece will own
or control CAD $25,000,000 (approximately USD $19,346,938 as of October 16, 2018) worth of the Company’s
stock, which value will be established by a 30-day closing average based on the 30-day period ending on October 10, 2018,
and the application of a market acceptable discount to the determined average. The CAD $25,000,000 value is based on
a pre-revenue, post-licensing evaluation of CannaPiece in the amount of CAD $100,000,000.
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3.
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The Company will have the right to appoint one board member on CannaPiece’s board of directors, and CannaPiece will have the right to appoint one board member on the Company’s board of directors.
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4.
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CannaPiece will rollout a clinic cannabis access program in all applicable Novo network clinics.
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5.
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CannaPiece will enter into a case conference program with applicable Novo network stakeholders.
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The
LOI provides that the parties will carry out due diligence and will proceed reasonably and in good faith toward the negotiation
and execution of definitive documentation regarding the transactions that are the subject of the LOI. Closing of the transaction
is conditioned upon the following, among other customary closing conditions, including receipt of required regulatory approvals:
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(i)
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Completion
of due diligence,
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(ii)
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CannaPiece’s
continuing toward full cannabis license producer status and not having the license application compromised in any way, and
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(iii)
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The
Company shares that will be the subject of the share exchange will be held in escrow until CannaPiece receives licensed producer
status.
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If
a definitive agreement is not executed by the parties on or before November 15, 2018 (or such other date agreed to by the parties),
the LOI will terminate.
The
foregoing description of the LOI does not purport to be complete and is qualified in its entirety by reference to the full text
of the LOI, a copy of which is filed as Exhibit 10.1 to this current report on Form 8-K, and is incorporated herein by reference.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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Novo Integrated Sciences, Inc.
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Dated:
October 16, 2018
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By:
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/s/
Christopher David
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Christopher
David
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President
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