VIVO Cannabis Inc. (TSX-V: VIVO, OTCQB: VVCIF) announced late last week that the company has acquired 100% of the issued and outstanding shares of the licensed cannabis cultivation company Canna Farms Limited.
VIVO Cannabis has recently begun expansion of their operations in the providences of Ontario and British Columbia. Their company sells a variety of branded strains of cannabis and cannabis related oils in Canada and is licensed under the Cannabis for Medical Purposes Regulationsin the country.
Under the terms of the agreement Canna Farms will be purchased and will become a wholly owned subsidiary of VIVO Cannabis Inc. in exchange for a total of $22.5 million in cash and 92.5 million common shares of VIVO. The total price of the acquisition will be a total of $133 million dollars.
Canna Farms cultivates and distributes award winning strains of small batch, hand trimmed, dried cannabis product for medicinal purposes on the western coast of Canada. Their company was the first licensed cannabis producer in British Columbia and the company prides itself on its artisan growing techniques. The company assures that their products are cultivated utilizing safe and non-toxic growing techniques to ensure the quality of their product for their consumers.
On October 17, 2018 the Cannabis Act will legalize the recreational use of cannabis and industrial hemp throughout Canada. A majority of public companies in the space have increased their efforts to acquire and partner with other companies in order to increase the scope of their operations to meet the growing demand for cannabinoid based products.