- Health-tech company Lifeist Wellness (TSXV:LFST) has signed a share purchase agreement to sell CannMart subsidiary
- The Toronto-based company signed the agreement with an affiliate of Tierra Corp., to divest and sell all of the shares of the CannMart Group for C$5 million
- Lifeist explained that the sale of its cannabis subsidiaries is expected to be immediately accretive to Lifeist shareholder value and position CannMart to succeed with much lower regulatory costs
- Lifeist Wellness Inc. last traded at $0.005 per share
Health-tech company Lifeist Wellness (TSXV:LFST) has signed a share purchase agreement to sell CannMart subsidiary.
The Toronto-based company signed the agreement with 1463663 B.C. Ltd. a newly-incorporated affiliate of Tierra Corp., to divest and sell all of the shares of the CannMart Group for C$5 million.
Lifeist explained that the sale of its cannabis subsidiaries is expected to be immediately accretive to Lifeist shareholder value and position CannMart to succeed with much lower regulatory costs. The team added that the projected final sale price for CannMart may thus exceed Lifeist’s total present market capitalization.
“The decision to undertake this transaction is a pivotal step in our broader strategy to fortify the financial position of both Lifeist and CannMart by improving cash flow, streamlining operational costs, and strategically shifting the focus of both entities beyond the constraints of the current cannabis regulatory framework,” Lifeist’s CEO, Meni Morim said in a news release. “The shareholders from both companies benefit from the laser like focus of each management team on their respective lines of business. Lifeist will focus on continuing the growth of its nutraceutical business Mikra and Aussie Vapes, while CannMart will benefit from operating away from the onerous demands imposed by the multilayered regulatory regime that governs Canadian public cannabis companies. Lifeist will also be positioned to greatly enhance available free cash without dilution or debt, allowing it to not only sustain but aggressively grow existing ventures while actively exploring additional strategic opportunities.”
Tierra Corp. is a private Canadian corporation that is led by its principal shareholder, Colin Samples.
Lifeist Wellness is a portfolio wellness company leveraging advancements in science and technology. CannMart Inc. had reported strong sales growth and product breadth expansion. Click here to read more.
Lifeist Wellness Inc. last traded at $0.005 per share.
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