CanaFarma Hemp Products Corp (CSE:CNFA, FRA:4K9) said it has signed a letter of intent (LOI) to acquire Avitas Bio Corp, a company with proprietary nutraceuticals and healthy snacks in the branded health and wellness space.
Under the proposed terms of the LOI, CanaFarma would issue an aggregate of 30 million common shares in return for 100% of Avitas Bio’s shares, subject to adjustment based on revenue and stock performance criteria. It is also subject to certain conditions, including completion of due diligence and the negotiation and execution of a formal purchase and sale agreement.
"We have followed Avitas Bio for some time and have admired their innovative approach to wellness,” senior vice president of strategy Vitaly Fargesen said in a statement. “This acquisition represents a perfect fit for our strategy of building a depth of intellectual property in the space.”
READ: CanaFarma partners with Vertical Wellness to introduce Just Live CBD Sparkling Water
Avitas Bio is an emerging growth biotechnology and health products company with two lines of business. Its namesake, Avitas Bio, is a nutraceuticals innovator offering a suite of varied proprietary products. VitaWin Healthy Snacks is an inventive manufacturer and marketer of premium chocolate candies, confectionery, and other food products. Select chocolate products, as well as a line of liquid tinctures and cosmetic creams, are infused with CBD, the legal, non-psychoactive hemp extract oil.
"Avitas Bio has assembled a portfolio of groundbreaking medicinal remedies developed in Israel to combat some of today's most pressing health and wellness challenges,” Avitas Bio director Henry Val said.
“Along with our healthy snacks, our brands are in some of the fastest-growing segments. This agreement with CanaFarma is expected to give us a platform upon which to realize the potential of these exciting new products.”
CanaFarma is a full-service company operating in the hemp industry offering a full range of hemp-related products and services to the consumer wellness market.
These products and services include growing high-quality hemp, providing hemp-processing services, and offering hemp-based products to consumers utilizing a well-established direct-to-consumer marketing approach.
Contact the author at stephen.gunnion@proactiveinvestors.com