- Canbud Distribution (CBDX) has signed a definitive agreement to acquire Molecular Science Corp
- The company has agreed to acquire all of the outstanding securities of Molecular Science through a three-cornered amalgamation
- Molecular Science is a privately held analytical science and services company, in the business of testing cannabis and related pharmaceutical products
- Completion of the transaction is subject to a number of conditions
- Canbud Distribution is down 4.55 per cent, trading at $0.10 at 9:30 am ET
Canbud Distribution (CBDX) has signed a definitive agreement to acquire Molecular Science Corp.
The Toronto-based cannabis company has agreed to acquire all of the outstanding securities of Molecular Science through a three-cornered amalgamation.
Under terms of the deal, a Canbud subsidiary will amalgamate with Molecular Science and continue as a new corporation, wholly-owned by Canbud.
The transaction is subject to receipt of all necessary regulatory approvals, including, as applicable, approval of the Canadian Securities Exchange.
Molecular Science is a privately held analytical science and services company, carrying on the business of testing cannabis and related pharmaceutical products.
Canbud Distribution Corporation is a science and technology health and wellness company carrying on business in the plant-based, psychedelic pharmaceutical and non-psychedelic nutraceutical, and hemp cannabinoid (CBD) vertical markets.
The cash and stock transaction includes a C$500,000 bridge loan to Molecular Science which the company will use to repay debt. Once the transaction closes, Molecular Science shareholders are expected to own approximately 44.7 per cent of the outstanding Canbud Shares on a non-diluted basis.
Upon closing, all directors and officers of Molecular Science are expected to resign except Mauro Aiello and Sherry Farsami, who will continue as the Interim CEO and Director of Quality Assurance, respectively.
Canbud Distribution is down 4.55 per cent, trading at $0.10 at 9:30 am ET.