Another day, another cannabis penny stocks acquisition! It seems almost weekly that a cannabis company spreads its footprint with an acquisition.
Today’s cannabis penny stocks takeover is by Canada-based Emerald Health Therapeutics Inc. (TSXV:EMH)(OTCQX:EMHTF), who has closed its acquisition of Northern Vine Canada Inc. by purchasing its remaining shares from Abattis Bioceuticals Corp. (CSE:ATT)
Cannabis Penny Stocks Acquisition
The shares were bought for $2 million CAD in cash, along with 1,093,938 common shares of Emerald. Previously, Emerald had owned a 65% stake in Northern Vine — but as of yesterday — it now owns 100%.
This acquisition will allow Emerald to take part in the growing market of cannabis analytical testing. As cannabis production volumes increase in Canada, so will analytical testing. This is part-in-parcel of assessing the potency and concentration of “toxic materials” — such as those found in cannabis production.
Though now owned by Emerald, Northern Vine will still operate independently.
The Benefits
This acquisition also allows Emerald to access Northern Vine’s dealer license which will allow the company to advance its research plans for developing cannabis formulations. These new formulations will be used for new recreational products as well as medical uses; treating a range of human conditions and diseases.
Inclusive in the agreement, is a milestone payment in the form of common shares of Emerald. This is valued at $4 million CAD if either of the companies receives gross revenue of $10 million CAD from the sale of products or services introduced by Abattis.
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Who is Emerald Health Therapeutics?
Emerald Health Therapeutics produces and sells dried cannabis and cannabis oil for medical purposes. It has its headquarters in Victoria, BC. Emerald also has a 50% stake in Pure Sunfarms along with complete ownership of Agro-Biotech — a Quebec-based licensed cannabis grower with a 75,000 square foot indoor facility.
Featured Image: Freepik
