Corp () (OTCMKTS:PEMTF) told investors Monday that it has opted not to go forward with its planned strategic merger with Stillcanna Inc, citing difficult market conditions.
The letter, dated February 26, would have seen Mota acquire the outstanding share capital of the large-scale CBD oil extraction company to further its own operations in the European market.
The decision was made by both parties, the company said.
READ: Mota Ventures inks LOI for strategic merger with Stillcanna
"After assessing the current market conditions and the sentiment of our shareholders, we have mutually decided with Stillcanna to terminate our letter of intent,” Mota CEO Ryan Hoggan said in a statement.
“Furthermore, we will no longer proceed with the announced financing tied to the acquisition as we do not have the financial need at this time. We are an established e-commerce business and will continue to execute our planned expansion into the European market," he added.
The previously-announced financing was expected to raise $5 million in proceeds.
Mota Ventures, based in Vancouver, aims to become a vertically integrated CBD company with operations in Europe and the Americas. It operates a 2.5 hectare growing site in Colombia and has begun to establish sales and distribution channels through the acquisition of the Sativida and First Class CBD brands.
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