Forian Inc. FORA announced the sale of its cannabis software subsidiary, Bio-Tech Medical Software, Inc. (d/b/a BioTrack), to Alleaves, Inc., effective February 10, 2023, for a total purchase price of $30 million in cash, comprised of $20 million paid at closing and $10 million paid in twelve required equal monthly installments, subject to any working capital adjustments. Forian will retain a license to certain cannabinoid-based data to enhance its healthcare information offerings. As a result of the transaction, Forian will focus on its healthcare information business and will no longer provide software solutions to the cannabis industry.
“This transaction allows us to focus our efforts on our healthcare information business, which has been the key driver of our growth to date and will further accelerate our path to positive adjusted EBITDA,” stated Max Wygod, executive chairman of Forian.
The acquisition by Alleaves adds point of sale and traceability platforms within the cannabis industry, including BioTrack and Cannalytics, to the Alleaves offering suite.
Simultaneous with the transaction, Daniel Barton stepped down as CEO and president of Forian effective February 10, 2023. Max Wygod, Forian’s co-founder and executive chairman, has been appointed interim CEO and president.
Price Action
Forian shares were trading 8.95% higher at $3.5736 per share at the time of writing Monday morning.
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