- Fiore Cannabis (FIOR) has agreed to acquire all of the issued and outstanding shares of Unified Spinco, a spin-out entity of Unified Global CO Inc.
- Fiore will issue 24,400,000 common shares to Unified Spinco shareholders at a deemed price of C$0.05 per share
- The acquisition will allow Fiore to acquire up to 41 retail cannabis locations and three cultivation operations in Colorado, Oregon and Alberta
- Fiore Cannabis has been investing in the development of recreational and medical cannabis products since 2014
- Operations include cultivation, production and retail sales
- Fiore Cannabis Ltd. (FIOR) opened trading at C$0.055 per share
Fiore Cannabis (FIOR) has agreed to acquire all of the issued and outstanding shares of Unified Spinco, a spin-out entity of Unified Global CO Inc.
This acquisition will allow Fiore to expand its current operations to become a five-market Canadian-American Multi-State Operator (Can-Am MSO).
Fiore will acquire Unified Spinco from its current shareholders in an all-share transaction valued at US$1 million. Fiore will issue 24,400,000 common shares to Unified Spinco shareholders at a deemed price of C$0.05 per share. On completion of the transaction, existing shareholders of Unified Spinco will become shareholders of Fiore holding approximately 13.5 per cent of the then outstanding Fiore shares.
There are no finder’s fees payable in connection with the transaction and Fiore is not assuming any long-term debt of Unified Spinco.
Fiore has also issued a convertible debenture with the assistance of Unified. The debenture bears interest at a rate of 12 per cent per annum and has an eighteen-month term. The debenture will be convertible into Fiore shares at the conversion price equal to US$0.10 per share, subject to adjustment, including capital adjustments and reorganizations. Payment of the principal and interest, subject to the right of conversion, shall occur on the maturity of the Convertible Debenture.
Fiore expects to use a portion of the net proceeds from the financing to pay the cost of the Cannabis Assets. Fiore expects to use the remaining net proceeds for working capital and other general corporate purposes, including the repayment of select payables.
The Unified Spinco transaction will allow Fiore to acquire brands, intellectual property, and leadership talent held by Unified Spinco, allowing the company to acquire up to 41 retail cannabis locations and three cultivation operations in Colorado, Oregon and Alberta.
Fiore Cannabis has been investing in the development of recreational and medical cannabis products since 2014. Fiore has expanded its operations to include cultivation, production and retail offerings in the key North American legal jurisdictions of Nevada and California. Fiore’s portfolio of brands caters to diverse consumer and patient experiences, with brands and products that address recreational, medical, wellness as well as new consumer experience preferences. Current brands include Fiore Cannabis, Diamante Labs, Surfer and The Weekender. Fiore operates retail cannabis outlets through its Green Leaf Wellness brand.
Unified Global intends to become a vertically integrated Canadian-American Multi-State Operator (Can-Am MSO) by acquiring and consolidating cannabis operations in various mature cannabis markets.
Fiore Cannabis Ltd. (FIOR) opened trading at C$0.055 per share.
