Chemesis International Inc (CSE:CSI) (OTCMKTS:CADMF) updated investors on Friday on the status of its proposed acquisition of a majority stake in GSRX Industries Inc (OTCMKTS:GSRX) to boost the cannabis company’s footprint in Puerto Rico and California.
Chemesis, a Vancouver-based vertically-integrated cannabis company, has agreed to acquire 41.6 million common shares and 1,000 preferred shares of GSRX for a 51% majority stake.
Shares of GSRX rose 13.3% on Friday at US$0.34 on OTC markets.
In return, GSRX will receive 18.9 million Chemesis shares. The deal is expected to close by the end of August.
Upon the closing of the acquisition, Chemesis will have controlling interest for the purposes of financial reporting, making the company a fully vertically integrated, multi-state operator with assets in California, Tennessee, Arizona, Michigan, Texas, and Puerto Rico, CEO Edgar Montero said in a statement Friday afternoon.
“The company continues to position itself in the market to ensure we are able to develop the business in a way that builds long term shareholder value,” Montero told shareholders.
Chemesis also said that its California extraction facilities are seeing an increase in trim being processed month over month.
The company continues to manufacture finished products for its in-house and partner brands while working on expanding its manufacturing capabilities to increase product offerings. In addition, Chemesis is expanding its relationship with Happy Tea and Jay & Silent Bob to add additional SKUs to its portfolio.
Shares of Chemesis lost 11% in Canada at C$0.89.
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