Khiron Life Sciences, a Toronto-headquartered cannabis company, is all set to acquire 100 percent of the outstanding securities of Canapalife S.r.l. and a 100 percent stake interest in Campodoro S.r.l., together known as the Canapalife Group, from shareholders Paolo Puggioni and Alvaro Garro.
The Italy-based Canapalife Group holds licenses for research, cultivation, production and marketing of hemp-based products. The company, which has three CBD consumer brands under its belt — Canvax nutraceutical products, Bloom CBD e-liquids, and Legal Seeds — is well-known for conducting research in collaboration with many prominent universities. In addition, the group operates a cultivation site in Padua (near Venice), Italy.
With this move, Khiron Life Sciences has taken a step further in expanding its business globally.
Notably, Italy is the 2nd largest cannabis market and the 4th largest economy in Europe.
“Besides increasing our multi-jurisdiction cultivation and production capacity, Canapalife bestows us with the addition of dynamic brands to our product portfolio, access to key retailer partners and potential partnerships with Italy’s leading research facilities,” Khiron CEO and Director, Alvaro Torres, said in a statement.
The following acquisition terms have been made public:
1 ) The present shareholders, Puggioni and Garro, are expected to continue working as key employees with Khiron, once the acquisition goes through.
2) As consideration for the acquisition of Canapalife Group, Khiron Life Sciences will issue such number of common shares as is equal to C$10.50 million at a deemed price/share equal to the trailing 20-day volume weighted average closing price of its common shares on the TSX Venture Exchange.
3) Over the course of 2 years, an earn-out of additional common shares for up to C$4,50 million, will be payable by Khiron Life Sciences to the shareholders, subject to Canapalife Group achieving certain revenue milestones.
4) The transaction will be marked complete after the execution of a definitive agreement and receipt of all necessary regulatory approvals, including final acceptance of the TSXV.
