CannaRoyalty Corp. announced on Feb. 17 the closing of its previously announced acquisition of a 20% equity stake in Anandia Laboratories Inc., a cutting-edge cannabis biotechnology company, in exchange for aggregate consideration of C$4,042,439.09.
Anandia Labs is the only independent Canadian testing facility specializing exclusively in cannabis. Together with a significant intellectual property position that includes cannabinoid pathway patents and proprietary genetics, Anandia Labs possesses a Health Canada Dealers License. The dealers license permits Anandia Labs to undertake research and development, and to develop products beyond those currently permitted for licensed producers under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR).
“Anandia Labs’s expertise in cannabis testing is essential to ensuring that patients are receiving safe and effective products in the Canadian cannabis sector. In combination with the company’s plans to leverage its dealers license to develop its expertise in developing and producing cannabis extracts, Anandia Labs has positioned itself as a true leader in the Canadian cannabis industry. With the closing of the acquisition of our ownership stake in Anandia Labs, we are proud to add such a valuable and strategic asset to the CannaRoyalty platform,” said Marc Lustig, Chief Executive Officer of CannaRoyalty.
CannaRoyalty has acquired an aggregate of 5,079,441 shares in Anandia Labs, representing a 17.97% equity interest in Anandia Labs, in exchange for C$1,521,217.55 in cash, 682,097 common shares of CannaRoyalty at a deemed price per CR Share equal to $2.93214, being the volume weighted average price of the CR Shares on the Canadian Securities Exchange for the 10 consecutive trading days immediately preceding the date hereof, and 7,471 CR Shares at a deemed price per CR Share equal to $2.84, being the closing price of the CR Shares on the trading day prior to the date of the announcement of the transaction. A further 716,941 shares of Anandia Labs will be issued to CannaRoyalty on delivery and acceptance of certain equipment and services, which delivery is expected to occur in Q2 2017. Issuance of these additional shares in Anandia Labs will increase CannaRoyalty’s ownership position to 5,796,382 shares, or a 20% equity interest.
Source: Cannabis Business Times