• MediPharm Labs Corp. (LABS) has agreed to acquire VIVO Cannabis Inc. (VIVO)
  • The transaction is expected to create a new, combined international medical cannabis company
  • VIVO shareholders may receive between 0.2110 and 0.4267 common shares of MediPharm for each VIVO share held, subject to adjustment
  • The transaction is expected to close during the first half of 2023
  • MediPharm Labs Corp. (LABS) is unchanged, trading at $0.07 per share as of 1:55 p.m. EST
  • VIVO Cannabis Inc. (VIVO) is unchanged, trading at $0.03 per share as of 1:55 p.m. EST

MediPharm Labs (LABS) has agreed to acquire VIVO Cannabis Inc. (VIVO).

The transaction is expected to create a new, combined international medical cannabis company.

The agreement will permit VIVO shareholders to receive between 0.2110 and 0.4267 common shares of MediPharm for each VIVO share held, subject to adjustment.

The transaction is expected to close during the first half of 2023. After which, existing MediPharm shareholders are estimated to own somewhere around 65 to 79 per cent of the combined company and VIVO shareholders are expected to own between 35 to 21 per cent.

The exchange ratio at closing will be decided by the amount of working capital of VIVO by way of a promissory note. The decided ratio will consider any funds advanced by MediPharm up to a maximum of $3.75 million.

The agreement involves certain customary requirements, including promises in respect of non-solicitation of alternative acquisition proposals for VIVO and a termination fee of $1 million payable to either party under certain circumstances.

MediPharm Labs Corp. (LABS) is unchanged, trading at $0.07 per share as of 1:55 p.m. EST.

VIVO Cannabis Inc. (VIVO) is unchanged, trading at $0.03 per share as of 1:55 p.m. EST.


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