A small oil and gas company headquartered in Calgary is moving forward with a new strategy pursuing opportunities in marijuana.
Relentless Resources announced its plan on Wednesday along with a package of investor arrangements including a $7.5 million financing recapitalization.
Sundial Growers founder Stanley Swiatek, who is also a member of both Alberta Provincial Government Cannabis Roundtable and the Health Canada Cannabis Roundtable, will join the company’s board of directors.
Following his appointment and the recapitalization, Relentless says it “will be well positioned to build and maintain a diversified portfolio of cannabis-sector businesses.”
The company says its growth strategy will initially include the production, distribution and sale of cannabis in all acceptable forms, through the acquisition of, or an investment in, a licensed producer or a late stage applicant to become licensed producer, following which it will work towards the investment and development of ancillary products and services for the fast-growing cannabis market, and pursue the acquisition of complementary production and manufacturing facilities.
It is anticipated that any acquisition or investment made by the company in the cannabis sector will be operated as a wholly-owned subsidiary of Relentless, which will continue to be engaged in the business of developing its oil and gas assets.
The company produced 171 boe/d in the third quarter of 2017, reporting comprehensive income of $2,399.