Sunniva Closes Sale of Natural Health Services for $0.25 Million in Cash, $8.75 Million in Private Equity

Sunniva Inc (CSE: SNN) has finally closed a sale of some of its Canadian assets. The firm announced this morning that it has completed the sale of Natural Health Services, which was previously announced on September 10, 2019. However, the sale is now occurring under heavily revised terms when compared to what was initially proposed.

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First and foremost, is that the sale is not to The Clinic Network Canada (TCNC). Rather, the completed sale was instead made to Cura-Can Health Corp, the parent company of TCNC. While some may view as insignificant, this small change alters who’s shares Sunniva is receiving in the transaction.

Furthermore, the purchase consideration has changed significantly. While Sunniva was originally to receive $9.0 million in the transaction via an equal split of cash and common shares of TCNC, the cash strapped issuer is now receiving much less cash. Instead of $4.5 million, Sunniva will now only be receiving $0.25 million in the form of cash, which will do little to pay off any outstanding debts the firm currently has. Additionally, $8.75 million of the purchase price will be comprised of Cura-Can equity in the form of 7,000,000 common shares of the private entity.

The sale of Natural Health Services took effect on December 18, 2019.

Sunniva Inc last traded at $0.35 on the CSE.

Information for this briefing was found via Sedar and Sunniva Inc. 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.