CannaRoyalty (CSE:CRZ) announced a binding letter of intent with Tidal Royalty (CSE:RLTY) for the sale of equity stake and royalty entitlement in Alternative Medical Enterprises (AltMed) for a reported C$8 million.
As quoted in the press release:
CannaRoyalty will maintain the right to license MÜV products in California, Nevada, Canada and other select markets.
AltMed is a licensed cannabis business operating in the state of Florida that exclusively manufactures and distributes a line of award-winning cannabis infused products marketed under the MÜV brand. NuTrae (doing business as MüV), is a subsidiary of AltMed and launched the MüV product line in Q3, 2016 exclusively in the Arizona medical market. As previously disclosed, CannaRoyalty currently holds an 6.14 [percent] ownership position in AltMed and has a 3.5 [percent] royalty on global net sales of the following MüV products: Transdermal patches, metered dose inhalers, and patent-pending transdermal gels.
“The sale of our equity stake and royalty in AltMed advances our stated strategy of realizing value for shareholders on assets that are deemed non-core to our business. The substantial gains from our successful investment in AltMed will provide CannaRoyalty with capital to continue to expand its distribution and brand network in the California market, while offering CannaRoyalty shareholders a significant return on investment,” said Marc Lustig, Chairman and CEO of CannaRoyalty.
The aggregate consideration of C$8 million will be in a combination of cash and Tidal Royalty’s stock. Closing of the transaction is subject to, among other things, the satisfactory completion of due diligence, which is currently underway, and the receipt of all corporate and regulatory approvals.