Phyto Extractions Inc announced it has struck a deal to acquire a multidisciplinary centre that offers cannabis and psychedelic therapies in British Columbia for C$2.3 million.
The agreement for 1225140 BC Ltd, doing business as PerceiveMD, was signed through Phyto’s wholly-owned subsidiary Adastra Labs Inc and will be satisfied in Phyto shares.
In a statement, Langley-based Phyto said that PerceiveMD offers a “holistic, team-based approach to patient care.”
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The centre provides its services through a virtual platform to clinics across the province, which collectively serve an estimated 4,500 patients, according to a release.
Phyto said that over the past 12 months, PerceiveMD has generated average unaudited revenues of approximately $53,000 per month and has no material long-term debt -- and positive working capital – as of the acquisition date.
“Through acquiring PerceiveMD and its extensive team of industry experts, we will be able to build and develop new medical cannabis products through Phyto Extractions to service patients suffering from a variety of ailments,” Phyto CEO Michael Forbes said.
“This is an opportunity to work with one of British Columbia's leading medical cannabis and forward-looking therapy clinics, allowing us to greatly enhance our product lineup based on rapid and direct patient feedback.”
As outlined in the share purchase agreement, Adastra will purchase all of the PerceiveMD shares for a total purchase price of C$2.3 million. The agreement provides for the payment of the purchase price to the vendors as follows: (i) $10,000 by Adastra as a non-refundable deposit on the execution of the share purchase agreement; and (ii) $2,290,000 by way of the issuance by Phyto Extractions, on behalf of Adastra, of that certain amount of unrestricted shares that equals $2,290,000 as calculated on the basis of the daily volume weighted average closing price for 10 consecutive trading days immediately before the closing date.
Phyto produces and distributes cannabis-derived products, designed for medical cannabis and forward-looking therapeutic use.
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