Ayurcann Holdings Corp. (CSE:AYUR, OTCQB:AYURF) said it has entered into an agreement to acquire 100% of Joints and Hustle & Shake Inc. for $5,500,000.
The arm's length transaction is expected to close in the coming weeks. Consideration comprises $5,500,000 in common shares of Ayurcann at a deemed price of $0.17 each. The consideration shares are subject to a statutory hold period of four months and one day and shall be deposited into escrow and be released every six months in 25% allotments. They are also subject to post-closing downward adjustments pursuant to the terms and conditions of the escrow agreement.
In a statement, Igal Sudman, chief executive officer of Ayurcann said: "We are excited about the ability to participate in new M&A deals and strategically invest in and acquire opportunities that enhance our company and our ability to expand and grow our offerings across the country. Growing our business and market share is a top priority."
READ: Ayurcann Holdings sees fiscal 3Q revenue rise to $2.8M as it gains more traction in the market
Joints and Hustle owns the 'Joints' and 'Hustle and Shake' brands which are being sold in various provinces across Canada. Ayurcann supplied materials required to produce products sold under both brands.
Ayurcann is a leading post-harvest solution provider with a focus on providing and creating custom processes and pharma-grade products for the adult-use and medical cannabis industry in Canada.
Contact the author at jon.hopkins@proactiveinvestors.com