WeedMD Enters Definitive Agreement To Acquire CannTx For $17.5 Million
WeedMD Inc (TSXV: WMD) this morning announced that it has entered into a definitive agreement to acquire further cultivation capacity. The firm will be acquiring that of CannTx Life Sciences, a craft cultivator that is based in Guelph, Ontario.
The transaction will see the craft cultivator acquired in an all-stock transaction, with the firm to continue to operate as a subsidiary as the company. The move follows the company recently shutting down certain of its own cultivation operations due to weak market conditions, including the outdoor grow operations previously housed at its facility is Strathroy.
The purchase is said to provide WeedMD with “complementary operations,” while also improving distribution capabilities. Total consideration is pegged at 62.5 million common shares of the issuer, valued at roughly $17.5 million at a price of $0.28 per share. The transaction is slated to close in late August.
The company also announced this morning that it will be proceeding with its recently announced name change to Entourage Health. The company is expected to trade under the ticker symbol “ENTG” as of July 16, with the name change also becoming effective as of that date.
WeedMD last traded at $0.29 on the TSX Venture.
Information for this briefing was found via Sedar and WeedMD. 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.
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