Lifeist Wellness (OTC:LFSWF) acquired all shares of 1000594871 (4871) Ontario Corp., which holds vaporizer technology. The news marks a U-turn on Lifeist's recently announced plan to move away from its legacy cannabis business.

What happened: The Toronto, Ontario-based health-tech company reported Friday that it has completed the acquisition of 4871, which holds key intellectual property resulting from a patent application and all related rights.

The pending patent application was purchased for one million shares of Lifeist. In the event the patent is issued, Lifeist or 4871 is required to pay the vendor of 4871 50% of all net revenue generated from the issued patent, up to a maximum of CA$1 million ($730,910). If the issued patent is sold, transferred, or otherwise disposed of during its term, Lifeist or 4871 must pay 50% of the received consideration at closing, plus any deferred payments, up to a total of CA$1 million.

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Why it matters: The acquisition of this intellectual property will provide shareholders with upside exposure to new developments in the cannabis industry, even as the company divests itself of CannMart and moves away from direct cannabis operations and contact with the flower.

The acquired patent application addresses product technologies for the high-potency cannabis concentrates market, which was worth $6.17 billion USD in 2023 and is projected to grow to $44.35 billion by 2032 with a compound annual growth rate (CAGR) of roughly 24.5% between 2024 and 2032.

Previously, Meni Morim, CEO of Lifeist said the company's second-quarter performance "is another clear indication that we must move on from operating our legacy cannabis business segments and find other solutions that have exposure to the broader wellness market."

With this new acquisition, the company does not seem to be moving away from the cannabis industry.

Price Action

Lifeist shares closed Friday's market session flat at $0.08 per share.

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Photo: Courtesy of SD_FlowerPower via Shutterstock