Mettrum Health Corp. (TSXV:MT.V), a vertically integrated provider of cannabis products, is pleased to announce that it has entered into an agreement with Cannabis Care Canada Inc. (“CCC”) to sell to CCC its wholly-owned subsidiary Mettrum (Bennett North) Ltd. (“Bennett Road North”), which is licensed to produce and sell dried cannabis and cannabis extracts for medical purposes. CCC is financially backed by Laborers International Union of North America (“LiUNA”), North America’s single largest construction union with over 100,000 Canadian members. Under the terms of the agreement, CCC will pay $7 million in cash to acquire Bennett Road North and enter into a three-year Supply Agreement that is expected to generate up to $40mm in revenue for Mettrum over the next three years. As part of the transaction, CCC will assume all outstanding obligations associated with Bennett Road North.
Once the transaction is completed in the coming months, Bennett Road North will be renamed Starseed Medicinal Inc. (“Starseed”) and will become a wholly-owned subsidiary of CCC, whose board members include Mr. G. Edmund King (former CEO and Chairman of Wood Gundy), Dr. Hugh E. Scully (previously president of both the Ontario and Canadian Medical Associations), and retired Major General Lewis Mackenzie. Mettrum will supply Starseed with cannabis and cannabis extracts to sell to members of LiUNA who have valid medical documents to use cannabis for medical purposes.
- Supply Agreement Expected to Generate up to $40mm in Revenue and Make a Material Contribution to Profitability
- Sale Agreement of Non-Core Asset adds Non-Dilutive $7mm to Balance Sheet
- Accelerates Previously Announced Consolidation, Improving Operating Performance
“Given the scale of our operations at Bennett Road South and Creemore, it was very timely to find a purchaser for Bennett Road North who is also a great strategic partner,” said Michael Haines, Chief Executive Officer of Mettrum. “We are extremely excited to enter into this agreement which does three important things for Mettrum. First, it allows us to continue to lower operating costs by streamlining and consolidating our operations at our new headquarters. Second, it strengthens our already robust balance sheet in a non-dilutive manner. Lastly, and most importantly, it greatly enhances the scale of our business through our supply agreement, and access to a new market, with Cannabis Care Canada Inc.”
Laborers International Union of North America (“LiUNA”), North America’s single largest construction union with over 100,000 Canadian members, is a shareholder of Cannabis Care Canada Inc. and will be working closely with Starseed on behalf of its members. Mr. Joseph Mancinelli, VP of LiUNA said, “We believe cannabis is a medicine able to treat many ailments, including the management of pain. Working in conjunction with Mettrum and Starseed, we want to make medicinal cannabis treatment available to all of our members and their families and will, in time, make it a paid benefit.”
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CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.