Arev Brands International Ltd (CSE:AREV) has struck a C$1.2 million agreement to acquire certain assets of the cannabis company Canna Gold Inc.
The assets are made up of the Canna Gold brand as well as its production methods and full range of products, which include vaporizers and tinctures.
“The business involving these assets and products will be deployed in jurisdictions where such business is legal such as in certain states of the US,” according to a company statement.
READ: Arev Brands International eyeing near-term revenue as it starts commercialising Bare Topicals brand
Arev CEO Mike Withrow is bullish on the acquisition of the assets as it will allow for the advancement of distribution and licensing agreements in Canada and in the US’s legal cannabis markets.
Thanks to the acquisition, Arev now has a complete cannabis portfolio, ranging from genetics and seeds to high-quality extract and concentrates for use in its finished products; these include Bare Medicinal Topicals, which treat burns, scarring and severe insect bites, as well as tinctures, vape pens and distillates, isolates and other concentrates.
“This is a fantastic acquisition for our shareholders as it adds another award-winning line to the company’s product portfolio,” said Withrow in a statement.
“We can now enter into distribution and licensing agreements in Canada and US legal markets where we can leverage the BC Bud Depot customer base of 50,000 patients and adult users.”
The purchase price of C$1.2 million will be paid via the issuance of 4 million shares of Arev to Canna Gold’s founder Jeff Mischuda at a price of C$0.30 per share.
US cannabis concentrate product sales are expected to hit US$8.4 billion by 2022, according to a research report by Arcview Market Research. Vaping is the main driver of concentrate sales.
Arev Brands shares held steady at C$0.31 in Friday’s morning trading session.
Contact Ellen Kelleher at [email protected]