Puration Unveils Plans For Cannabis Cultivation Deal With Kali-Extracts' NCM Biotech

Cannabis company Puration Inc. PURA announed Friday the sale of its cultivation business.

The Dallas-based company had previously spun-off the segment in a deal with Nouveau NOUV, in exchange for common stock. That deal has been canceled.

Instead, Puration has opted to merge the cultivation business with NCM Biotech, a subsidiary of Kali-Extracts KALY.

NCM Biotech specializes in the research and the development of treatments derived from its patented cannabis extraction process.

The common stock will be issued to Puration's shareholders in a dividend distribution at a ratio one-for-one.

In January, Puration and Kali-Extracts started negotiations about a prospective purchase of Kali-Extracts' CBD confection assets.

Two months later, Puration confirmed that the acquisition was underway.

Meanwhile, driven by estimations that the CBD pet products market in the U.S. could reach $1.16 billion over the next two years, Puration has made an offer to purchase an unspecified CBD pet products operation earlier this year.

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