Cannara Biotech To Buy Remaining Stake In shopCBD.com

Vertically integrated cannabis company Cannara Biotech Inc. LOVE LOVFF disclosed Wednesday it has entered into a proposed stock swap agreement with Global shopCBD.com Inc. and its shareholders.

Under the deal, the Vancouver-based company agreed to fully acquire its subsidiary, whose 61.23% of the outstanding shares it already owns.

In exchange, Cannara will issue over 23.2 million common shares to shopCBD shareholders at 10 cents per share.

Global operates within the U.S. Hemp CBD market, offering its products via an e-commerce platform. Its value is estimated at $6 million. 

Cannara said there are no guarantees regarding the completion of the proposed transaction, highlighting it remains subject to specific closing conditions.

The proposed transaction will be handled as a "related party transaction," considering the company's president, CEO, and director Zohar Krivorot is also a director of Global.

Cannara is centered around indoor cannabis cultivation and the processing of dried cannabis and cannabis derivatives.

Its 625,000 square feet facility in Quebec is one of the largest indoor cannabis cultivation spaces in the country.

Meanwhile, the company marked 4/20 by announcing its first crop for this year.

However, earlier this year, FSD Pharma Inc. HUGE decided to sell its stake in Cannara, that way retrieving more than $7.7 million.