Avicanna To Purchase Assets of Medical Cannabis By Shoppers For $2.6 Million
Avicanna (TSX: AVCN) has confirmed it will be moving forward with the previously announced plan to acquire Medical Cannabis by Shoppers.
A definitive agreement has now been entered between Shoppers Drug Mart, a subsidiary of Lowlaw Companies (TSX: L) and Avicanna, providing for the purchase to proceed and close by July 31, 2023. The transaction was originally announced in late March.
The transaction is set to consist of an upfront payment of $2.6 million for specific assets of the business, which includes inventory and equipment. A two-year earn-out is also attached to the deal.
Upon completion of the transaction, current customers of Medical Cannabis by Shoppers will be transitioned to MyMedi.ca. Avicanna has previously stated that the new platform will also feature pharmacist-led support programs, as well as education in the areas of harm reduction. Specialty services will also be offered to distinct groups such as veterans.
“Since the initial announcement in March 2023, we have worked diligently and collaboratively to develop and execute a seamless process for transitioning patients, and address various patient, product and operations matters through the buildout of MyMedi.ca,” commented Avicanna CEO Aras Azadian.
Medical Cannabis by Shoppers was originally launched in January 2019, roughly three months after recreational cannabis was legalized across Canada. In the time since the platform is said to have “supported tens of thousands of patients,” while listing over 30 cannabis brands.
Avicanna last traded at $0.385 on the TSX.
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