Cann Pharmaceutical Ltd. entered into memorandum of understanding to acquire WhiteSmoke Software Ltd (TASE:WSMK) in a reverse merger transaction on January 29, 2019. At completion of the deal, the WhiteSmoke shall have the sum in cash of at least $12 million, after offsetting certain debts in a cumulative amount of up to $0.2 million the maturity date of which has not yet been reached and which will be approved in writing by Cann. After completion of the deal, Cann shareholders shall transfer to WhiteSmoke the 100% of Cann share capital in exchange for WhiteSmoke shares of about 80% of the issued and paid up share capital, in a share swap deal. WhiteSmoke will be forced to execute a capital raising in order to meet this conditions. Deal is subject to customary approvals.