NetworkNewsBreaks – ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) Enters Definitive Agreement to Acquire Canna Farms Ltd.
Globally licensed cannabis company ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) this morning announced its entrance into a definitive agreement to acquire 100% of the issued and outstanding share capital of Canna Farms Limited, a premium cannabis company in British Columbia. The acquisition enables the two complementary businesses to leverage their strengths prior to the opening of the Canadian adult-use market in the fall. The transaction value of approximately $133 million will be comprised of $22 million in cash and 92.5 million ABcann shares. The shares will be released from escrow in six month increments over a total of 30 months. Upon completion of the transaction, Canna Farms’ co-founders, Daniel Laflamme and Raymond Laflamme, will each own 16.1% of ABcann’s outstanding shares. They will serve the combined company as President, Canna Farms and Senior Vice President, Facilities and Engineering, respectively. Daniel Laflamme will also be appointed to ABcann’s Board of Directors. Closing of the transaction is anticipated in August 2018, subject to customary closing conditions, including the conditional approval of the TSXV and applicable regulatory approvals. “This is a transformational acquisition, and key benefits include increased production capacity, an expanded product offering, operational efficiencies, and a more robust platform to accelerate our growth,” ABcann CEO Barry Fishman stated in the news release. “We will maximize operational and financial synergies, so that the combined company will be greater than the sum of its parts.”
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