|Date Announced:||July 30, 2018|
VIVO Cannabis Inc. (formerly ABcann Global Corporation) entered into a definitive agreement to acquire 100% of the issued and outstanding share capital of Canna Farms Limited. Canna Farms was the first Licensed Producer in B.C. and as many years of craft cultivation experience and expertise, as well as a significant patient base and positive cash flow.
The value of the transaction is approximately C$133 million, comprised of $22 million in cash and 92.5 million VIVO shares. The share consideration will be released from escrow in six month increments over 30 months. The transaction is expected to close in August 2018 and allows the two complementary businesses to leverage each other’s strengths prior to the opening of the adult-use market in the fall. The completion of the transaction is subject to the satisfaction of customary closing conditions, including the conditional approval of the TSXV and applicable regulatory approvals.