Atlas Global Brands Inc. ATL has entered into binding letters of intent through its Israeli subsidiary, each dated March 2, 2023, pursuant to which the company will indirectly acquire 70% and 51% of the outstanding securities of two cannabis pharmacies in Israel.
Each of the pharmacies to be acquired are licensed to dispense medical cannabis. Pharmacy 1 is located in Tel Aviv and pharmacy 2 is located in Jerusalem. These pharmacies were specifically designed to sell and distribute cannabis. Completion of the proposed transactions will expand Atlas’ retail presence in Israel thereby advancing its vision of becoming a premium supplier of medical cannabis in the Israeli market.
Terms of the Proposed Acquisitions
Under proposed transaction 1, Atlas will indirectly acquire a 70% interest in pharmacy 1 for NIS 1.3 million ($360,000), payable at closing.
Atlas, pursuant to proposed transaction 2 shall indirectly acquire a 51% interest in pharmacy 2 for 1.13 million Atlas shares valued at a deemed price of CA$1.00 per share, payable at closing.
Each of proposed transaction 1 and proposed transaction 2 will include a put option pursuant to which the vendors will be entitled, upon subject to satisfaction of yet-to-be determined conditions to sell the remaining 30% and 49% interest to the company, at a price based on yet-to-be determined financial results. The final structure of the proposed transactions shall be determined by the parties subsequent to the receipt of tax, corporate, and securities law advice. The proposed transactions are expected to close in the last quarter of the fiscal 2023 transition year.
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