Ayurcann Holdings Corp. (OTCQB:AYURF) (CSE:AYUR) (FSE: 3ZQ0) entered into a share purchase agreement, pursuant to which the company will acquire 100% of Joints and Hustle & Shake Inc. for $5.5 million.
About Joints and Hustle
Joints and Hustle holds assets comprising the 'Joints' and 'Hustle and Shake' brands. Currently, the brands are being sold in various provinces across Canada. Prior to the acquisition, Ayurcann was the supplier of choice for the input materials required to produce products sold under the brands. The Joints brand offers market leading high potency CBD oils products. The Hustle & Shake brand focuses on the true to flower cannabis experience with high potency vapes.
Transaction Details
The acquisition, which is an arm's length transaction, is subject to customary conditions of closing and is expected to close in the coming weeks. The consideration for the acquisition is comprised of $5.5 million in common shares of Ayurcann on the basis of a deemed price of $0.17 per Ayurcann share.
The consideration shares are subject to a statutory hold period of four months and one day and, pursuant to the terms of the share purchase agreement, shall be deposited into escrow and be released every six months in 25% allotments and are subject to post-closing downward adjustments pursuant to the terms and conditions of the escrow agreement.
As a condition of the acquisition, Tetra Oils Inc. entered into a support and voting agreement with respect to the consideration shares received by Tetra in connection with the acquisition. Pursuant to the voting agreement, the company will provide written notice to Tetra on how the considerations shares must be voted. The voting agreement will automatically terminate two years after the date of the closing of the acquisition.
Igal Sudman, CEO of Ayurcann stated: "We are excited about the ability to participate in new M&A deals and strategically invest in and acquire opportunities that enhance our company and our ability to expand and grow our offerings across the country. Growing our business and market share is a top priority."
Photo by Shelby Ireland on Unsplash
Related News
Ayurcann Slight Revenue Increase In Q3 Fiscal 2022 Of 7.69% YoY
Cannabis Extraction Co. Ayurcann Holdings To Buyback Stock Under Normal Course Issuer Bid
Cannabis Extraction Co. Ayurcann Shares Slightly Up On Record Sales, 106% YoY Revenue Growth
