Wellbeing Digital Sciences Inc (NEO:MEDI.AQN, OTCQB:KONEF) told investors it has struck a deal to sell its wholly-owned KGK Science subsidiary to Cardinal Group Inc for $2 million.
The company said in a statement that Cardinal has advanced a non-refundable deposit of $200,000 under the share purchase agreement dated June 7, 2023, with further deposits to be advanced at its discretion before the completion of the transaction, subject to Wellbeing’s approval.
It noted that no finders’ fees or commissions are payable by the company and it and KGK are at arms-length from the purchaser.
As the transaction represents the sale of substantially all of its operating assets, Wellbeing said it needs the approval of shareholders at a soon-to-be-convened special meeting and that more details will be provided in an information circular ahead of the meeting.
KGK is a leading North American contract research organization based in London, Ontario that primarily provides high-quality clinical research trials with a focus on nutraceutical and emerging healthcare products.
Wellbeing is an evidence-based mental healthcare company focused on the development and implementation of innovative clinical treatment solutions, including psychedelic medicine and digital therapeutics, as supported by clinical research.
Contact the author at stephen.gunnion@proactiveinvestors.com