WELLINGTON, NEW ZEALAND: Cannasouth Limited (NZX: CBD) has today entered into two conditional agreements to buy the balance of the shares that it does not already own in its cultivation and manufacturing joint venture businesses.
- Acquisition of outstanding shares in Cannasouth Cultivation Limited
Cannasouth has entered into a conditional agreement with Aaron Craig and his family interests (Craig Family Interests) to buy the remaining 50% shares in Joint Venture business Cannasouth Cultivation Limited that Cannasouth does not already own, for an aggregate purchase price of $3,540,000.
- Acquisition of outstanding interest in Midwest Pharmaceutics NZ Limited
Cannasouth has entered into a conditional agreement with Mark Balchin and Greenmeadows Health Limited (“Midwest Vendors”) to buy the remaining 40 per cent shares in Hawkes Bay-based Midwest Pharmaceutics NZ Limited that it does not already own, together with the shareholder loans made by the Midwest Vendors to Midwest for an aggregate purchase price of $1,026,000. CEO of Midwest, Mark Balchin, will continue as Chief Manufacturing Officer for the Group.
Commercial Benefits of the Acquisitions:
• Take 100 per cent control of both joint venture cultivation and manufacturing businesses
• Accelerate pathway to significant revenue generation
• Improve operational efficiencies across the Group
• Post-acquisition revenues and 100 per cent of future profits will be consolidated into the Cannasouth Group P&L
• Opportunity to generate additional revenues from existing operations at Midwest while positioning the
business for GMP certified medicinal cannabis manufacturing
Cannasouth plans to undertake a Capital Raising to Fund the Acquisitions.
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