LiveWell Canada (CSE:LVWL) announced a binding letter of agreement to acquire Vitality CBD Natural Health Products and its US subsidiaries through a reverse takeover byVitality.
As quoted in the press release:
The Transaction will enable the combined companies to become a new leader in the health and wellness market for CBD products from hemp and cannabis. Vitality, a cultivator and producer of hemp CBD, and LiveWell, a cannabidiol (“CBD”)researcher, developer, marketer and distributor, will combine their U.S. and Canadian operations to address the anticipated growing demand for CBD and other cannabinoid products in North American and international markets.
The Transaction will bring together strategically aligned U.S. and Canadian assets to create one of the first fully integrated CBD companies: one of the largest hemp cultivation and CBD extraction operations in North America, which is anticipated to be producing 3,000 kilograms per day of CBD isolate by mid-2019; CBD research, product development and GMP manufacturing facilities; international sales networks; and experienced leadership. The new Canadian company (“Merger Co”) will be headquartered in Ottawa, Ontario, with locations in Las Cruces, New Mexico, and Eureka, Montana, United States, in addition to Gatineau, Quebec, Canada.
“As the cannabis and hemp industry grows and matures, we believe the combined organization better positions us for large-contract opportunities, greater market awareness and long-term success,” said Robert Leaker, President and CEO of Vitality. He further added: “We’ll have the resources to rapidly scale to meet the anticipated explosive demand in newly legalized CBD markets worldwide, we’ll have broader management experience, and we already share a vision of excellence backed by research and science.”