Empower Clinics Inc. (CSE: CBDT) announced today that it has signed a non-binding term sheet to divest all its cannabis assets under the Sun Valley name. The acquisition is reported to be for consideration of US$1.0 million.
The agreement stipulates that the Sun Valley founders Andrea Klein and Dustin Klein will acquire 100% of Sun Valley Holdings and all its subsidiaries under it. The transaction, expected to be cash-free and debt-free, is set to transpire once the Kleins settles the acquisition price with corresponding Empower Clinics common shares.
The healthcare firm relayed that the move will allow the company to focus on its integrated healthcare business. It also expects that this divestment of all its cannabis assets will open doors to engage with firms that had restrictions doing business with companies connected in the cannabis industry.
Empower Clinic first acquired Sun Valley from the Kleins in January 2019 for US$0.8 million in cash and US$1.0 million worth of Empower Clinic common shares.
The transaction is still subject to customary regulatory approvals and closing conditions.
Empower Clinics last traded at $0.50 on the CSE.
Information for this briefing was found via Sedar and Empower Clinics. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.