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.
Benzinga's Cannabis Capital Conference Is Back
The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Click on the image for more info.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry?
Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.
Get your tickets now before prices surge by following this link.