Pharmadrug Inc (CSE: BUZZ) announced this morning that it has completed its acquisition of Interrobang Ltd, doing business as Super Smart. The acquisition was a three-way amalgamation, resulting in Pharmadrug issuing 64.4 million common shares plus additional warrants to acquire the early-stage psychedelics firm.
Super Smart is a retail firm that is “focused on consolidating the fragmented Dutch smartshop market.” Smartshops are essentially retailers that sell psychoactive substances, such as psychedelic truffles in the Netherlands. The company currently “seeks to acquire smartshops and deploy disciplined business expertise.”
It’s unclear if Super Smart currently has any retail locations at this point in time despite having a consolidation strategy. They do, however, have the intent to acquire ten smart shops within the first 12 months of operation. Discussions have begun with several smart shops, but, “these discussions haven’t all lead to us having an interest, but a couple of the stores seem quite attractive and their current owners are receptive.“
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The large push behind the firm appears to the Super Smart management team, which includes Harry Resin, an entrepreneur in the cannabis space for the last two decades, and Joshua Kasakevich, an entrepreneur in the fashion industry whom built a business surrounding fur pelts.
With the closing of the transaction, Pharmadrug now wholly owns that of Super Smart. The transaction was originally to consist of 44,000,000 Super Smart shares being exchanged for Pharmadrug shares, as well as a $2.5 million senior secured debenture converted to a Pharmadrug debenture.
However, upon closing the Super Smart shares had increased to 64,420,000 common shares, along with $1.48 million in senior secured convertible debentures, in addition to 33.0 million common shares purchase warrants (with a $0.05 strike) and 3.5 million finder options. The debenture matures largely on May 19, 2023, with $289,000 maturing May 22, 2022, and convert at a price of $0.05 per unit. Each unit contains one common share, and one half of a common share purchase warrant with an expiry of 3 years and a conversion price of $0.05 per warrant.
Finally, all shares issued in connection with the transaction are currently free trading – with the market not knowing at what price prior sales of the Super Smart shares occurred at.
Pharmadrug Inc last traded at $0.065 on the CSE.
Information for this briefing was found via Sedar and Pharmadrug Inc. Pharmadrug Inc is a former client of Canacom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
