Lifeist Wellness Inc. (OTC:LFSWF) announced Thursday it completed the previously announced sale of CannMart's shares to Simply Solventless Concentrates Ltd.
CannMart is a business-to-business wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards.
"We are pleased to announce the successful completion of the sale of CannMart to Simply Solventless Concentrates, a company whose track record of profitability and operational excellence has continually impressed us," stated Meni Morim, CEO of Lifeist.
"This transaction not only ensures that CannMart is in capable hands but also allows Lifeist to sharpen its focus on our core mission of transforming human wellness," Morim added. "We believe that this sale represents a strategic win for our shareholders, as it positions Lifeist to allocate more resources towards growing Mikra while still benefiting from Simply Solventless' continued success in the cannabis market."
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Lifeist obtained shareholder approval to complete the sale of CannMart during a meeting held on Sep. 5, 2024. It also received approval of the TSX Venture Exchange to close the said transaction.
Read Also: Lifeist's U-Turn On Plan To Move Away From Cannabis Industry As It Buys Vaporizer Technology
As part of the deal, Lifeist received the following at closing:
- $500,000 cash payment and 2 million units of Simply Solventless worth also $500,000. Each unit includes one common share in SSC and half of a warrant. The full warrant grants Lifeist the option to purchase one Simply Solventless share at $0.40 for up to 24 months from the issuance date.
- A promissory note (the VTB loan), secured by CannMart's assets, for $1.7 million. The loan carries a 3% annual interest rate and will be repaid in monthly installments starting on Oct. 1, 2024. These payments vary in amount. They begin with $100,000 in October and increase to $400,000 in November. They reduce to $150,000 and $100,000 in subsequent months, until the loan is fully repaid.
The VTB loan is also subject to a 20% upward adjustment if CannMart's quarterly gross revenue exceeds $3 million for its existing brands in the four fiscal quarters immediately following June 25, 2024.
Price Action: Lifeist shares closed Thursday's market session 0.76% higher at $0.06 per share.
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Photo: Courtesy of Esteban López on Unsplash