CanaFarma To Spend $2 Million On A New Subsidiary Ahead Of Merger With Vertical Wellness

CanaFarma Hemp Products Corp. CNFA has signed a letter of intent to acquire Avitas Bio Corp., a company with a portfolio of consumer products, which includes nutraceuticals and hemp-derived CBD edibles and topicals.

Avitas’ products would be added to CanaFarma’s range of hemp-related products and services aimed at the consumer wellness market.

“We have followed Avitas Bio for some time and have admired their innovative approach to wellness. This acquisition represents a perfect fit for [our] strategy of building a depth of intellectual property in the space,” said Vitaly Fargesen, SVP of strategy for CanaFarma.

The acquisition would involve the issuance of approximately 30 million CanaFarma shares, valued at the time of this writing at CA$0.09 ($0.071), adding to an approximate total of $2.1 million.

“This acquisition is a means for its ever-expanding portfolio of brands to gain entry into groundbreaking medicinal remedies,” said Smoke Wallin, current CEO of Vertical Wellness, which is expected to close its merger with CanaFarma within the month, reaching a combined valuation of $50 million.

The closing of the purchase is still subject to due diligence, negotiation and execution of a formal purchase and sale agreement.

“Avitas Bio has assembled a portfolio of groundbreaking medicinal remedies developed in Israel to combat some of today’s most pressing health and wellness challenges. Along with our healthy snacks, our brands are in some of the fastest-growing segments,” said Henry Val, director of Avitas Bio.

Photo by Margo Amala on Unsplash.