InMed Pharmaceuticals (NASDAQ: INM) is looking to acquire one of its competitors. The firm has entered into a definitive agreement to acquire BayMedica Inc, a specialty firm focused on manufacturing and commercializing cannabinoids.
The company expects that the acquisition will make it a leader globally in the manufacture of rare cannabinoids, between its own processes and that of BayMedica, whom focuses on synthetic biology and chemical synthesis. The firm reportedly has annual revenues of roughly US$2.5 million, via its Prodiol CBC product.
The company is also reportedly in the process of commercializing a number of specialty cannabinoids, including CBDV, THCV, CBN, and others. The firm is presently operating on a wholesale sales model, focused on the consumer health and wellness markets.
The arrangement to acquire the firm follows a letter of intent that was entered into between the two parties at the end of June. Under the terms of the arrangement, BayMedica is to be acquired for US$3.72 million, with consideration to be in the form of 1.78 million common shares of the company. Up to 1.6 million warrants will also be issued to certain equity and debt holders of the firm.
Notably, the acquisition follows a collaboration announced roughly ten months ago by the duo, whereby the two firms were working together on the development of cannabinoids using their respective tech for the production of cannabinoids.
InMed Pharmaceuticals last traded at $2.09 on the Nasdaq.
Information for this briefing was found via Sedar and InMed Pharmaceuticals. 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.
