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Alta Vista Ventures (CNSX: AVV) reported today that it has restructured the deal to acquire Canadian licensed cannabis producer RedeCan Pharm. The company originally announced its intent to purchase the Ontario company in late November. The initial deal would have given AVV 100% ownership in exchange for $9.5mm, including $7mm in cash and $2.5mm shares at a deemed price of $0.33 per share (7.58mm shares). It also included a 10% royalty to be paid to the current RedeCan owners of 10%, paid equally in cash and stock.
The new terms eliminate the royalty and would give AVV a 90% ownership. The price has been changed to $8mm cash and 9mm shares. At a current price of $0.19 per share, the total deal value is $9.71mm. The company expect to close the transaction by March 1st, though this deal is not yet definitive. RedeCan had previously agreed to sell itself to another publicly-traded Canadian company, Abba Medix, but that deal failed to close. AVV described the company in a recent press release:
Redecan Pharm is located in the heart of the Niagara peninsula in Southern Ontario and currently utilizes 15,000 square feet of greenhouse space. RedeCan Pharm received its cultivation license in June of 2014 and was then issued its license to sell dry cannabis to medical patients across the country in March of 2015. RedeCan’s license is currently for the cultivation and sale of up to 317 kilograms of dried marijuana annually.
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