Supreme Cannabis Company Inc (OTC: SPRWF) on Thursday reached an agreement to acquire Blissco Cannabis Corp. (OTC: HSTRF) in an all-stock deal worth C$48 million ($35.65 million USD).
What Happened
Under the terms of the agreement, shareholders of
Blissco will be offered 0.24 shares of Supreme Cannabis Company for
each share they hold.
The deal was approved by the boards of directors of both
companies.
In addition, Supreme managed to secure irrevocable hard lock-ups from Blissco around 52 percent of shareholders, including the company’s CEO Damian Kettlewell who owns 10 percent of the outstanding stock, to support the sale of Blissco.
Why It's Important
Blissco, which positions itself as a premium wellness cannabis brand, will join Supreme Cannabis’ portfolio of brands and will operate as Supreme’s health and wellness business.
Kattlewell will continue to head the company, but as part of Supreme’s team and will benefit from the buyer’s expertise, infrastructure and access to capital. He will also retain at least 75 percent of his shares for a minimum of two years.
The acquisition will give Supreme Cannabis Company access to Blissco’s 18,000 square foot production facility in Langley, British Columbia. Blissco has already completed the phase 1 of construction of a cannabis oil extraction lab and has been manufacturing cannabis oils since it obtained its license last August.
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