Cannabis group to snap up licensed dealer for $38m

Cannabis group to snap up licensed dealer for $38m | Smart Association - PCMA

Cannabis group to snap up licensed dealer for $38m

Cannabis Wheaton Income Corp. has entered into an agreement to acquire all the outstanding securities of Dosecann Inc., a late-state licensed dealer applicant for $38m payable in common shares of the group.

Upon the completion of the acquisition, Dosecann will become a wholly-owned subsidiary of Cannabis Wheaton.

Dosecann recently accomplished a private round of debenture financing led by MMJ PhytoTech Limited, which invested $2.5m in the firm.

As part of the agreement, all outstanding convertible securities of Dosecann will either be converted into Dosecann common shares and exchanged for consideration shares on the closing of the acquisition, or will otherwise be exchanged for convertible securities of Cannabis Wheaton based on the exchange ratio used in the acquisition.

The transaction is expected to close on or about April 30.

Stoney Creek, Ontario-based Dosecann is developing a suite of cannabis-based health and wellness products for the medical and future adult use cannabis market. The company is planning construction of a 45,000 square feet GMP pharmaceutical level production facility in PEI and aiming to secure Licensed Dealer status by May 2018.

This article has been edited. It first appeared on Private Capital Journal, a site managed by CPE Media Inc, the official data provider for PCMA. Read the rest of the article here.

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