Pele Mountain Resources Inc. (TSXV: GEM) announced on June 19th that the company has agreed to and entered into a non-binding letter of intent with Bhang Corporation. Pele Mountain would retain a 100% interest in Bhang through a transaction defined as a reverse take-over and would change the control of Pele Mountain.
The final terms and agreements of the transaction are yet to be fully determined by Bhang and Pele Mountain to account for tax instances, accounting, and other legal or regulatory prerequisites.
The letter of intent also contains terms for a mutual non-solicitation and exclusivity provision agreement. Under this Bhang has agreed to pay a $25,000 initial payment with $10,000 per month to meet Pele Mountain’s operating or working capital.