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The Markets
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Cannabis

Yooma Wellness completes Big Swig acquisition

Yooma also issued shares to a former board member and its current chairman to pay for services provided in the past

Yooma Wellness Inc (CSE:YOOM, OTC:LVVEF, AQSE:YOOM, FRA:7AI) completed the acquisition of Big Swig Inc., a US-based seller of sparkling water beverages.

The deal was carried out via a merger between Big Swig and Yooma Acquisition II Inc., a wholly-owned subsidiary of the wellness group.

READ: Yooma Wellness grabs Big Swig to expand US footprint and 'cross-pollinate' with CBD brands

Big Swig is now a wholly-owned subsidiary of Yooma and its former shareholders exchanged their shares for common shares of Yooma.

Big Swig was valued at US$2.5mln, less liabilities and a final working capital adjustment on closing totalling US$1.3mln. This included US$375,000 owing to Yooma for funds advanced ahead of the transaction. Yooma issued 1.4mln shares at US$0.795 each to satisfy the payment.

Yooma also announced on Friday it issued 22,815 common shares at a price of CAD$0.85 each to a former board member to pay for outstanding retainer fees for services provided earlier in the year.

It also issued 298,911 common shares at a deemed price of CAD$0.738 per share to its chairman, Lorne Abony, to pay outstanding fees for services provided in 2020 to the company under a consulting agreement

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