Global Cannabis Co. Trading Lower On Announcing Amended European Business Sale Deal

Khiron Life Sciences Corp. KHRN KHRNF and 2518542 Alberta Ltd., a company controlled by Avonlea Drewry Holdings Inc., have entered into an amended and restated share purchase agreement, related to the sale of Khiron's European subsidiaries.

What Happened

Under the terms of the restated purchase agreement, the purchaser will continue to acquire the company's European subsidiaries for an aggregate base purchase price of $3 million, however, the purchaser will no longer enter into an option agreement that would have granted it an option to acquire all of the shares of the company's Colombian subsidiary, Zerenia S.A.S.

That option was removed to satisfy one of the conditions for the approval of the transaction by the TSX Venture Exchange (TSXV).

See also: Medical Cannabis Company Khiron Launching New Products In Europe

Khiron also announced that it has received the TSXV's conditional approval of the transaction and approvals under the German Foreign Trade and Payments Act and the German Foreign Trade and Payments Regulation in respect to the sale and purchase of the issued and outstanding shares of Pharmadrug Production GmbH.

As the company has received Pharmadrug regulatory approval, the sale and purchase of the issued and outstanding shares of Pharmadrug is expected to occur on or about November 17, 2023, together with the sale and transfer of all of the issued and outstanding shares of Khiron Europe GmbH, Zerenia Clinics Limited, Khiron Life Sciences UK Limited and Khiron Life Sciences Spain SL.

Other Details

Concurrently with the signing of the restated purchase agreement, the company, the purchaser and the subject subsidiaries have also entered into an amended and restated management services agreement under which the purchaser, as manager and independent contractor, will continue to facilitate and oversee the implementation of the interim operating plan for the subject subsidiaries during the interim period between the signing of the restated purchase agreement and the closing date.

The purchaser advanced to the company additional growth capital of $250,000 on Sept. 29, 2023, and $200,000 on Oct. 26, 2023, in addition to $1 million previously advanced on July 28, 2023, which amounts were disbursed directly to the subject subsidiaries in each case by the restated management agreement.

The closing of the transaction is subject to, among other things, the receipt of all necessary regulatory, corporate and board approvals including the final approval from the TSXV.

Now read: Khiron Snatches First Medical Cannabis Contract With One Of Colombia's Largest Insurance Companies

KHRNF Price Action

Khiron’s shares traded 11.3475% lower at $0.01 per share at the time of writing on Friday morning.

Photo: Courtesy of NikolayFrolochkin and ganjaspliffstoreuk by Pixabay