Simply Solventless To Acquire CannMart As It Seeks To Expand Into Hydrocarbon Cannabis Concentrates
Simply Solventless Concentrates Ltd. (TSXV:HASH) is acquiring Lifeist Wellness Inc.’s (TSXV:LFST) (FRANKFURT: M5B) (OTC:LFSWF) subsidiary CannMart Inc.
What Happened
The Calgary, Alberta-based company said on Wednesday that it has entered into a services agreement regarding the operations of CannMart and a share purchase agreement with Lifeist Wellness Inc. to acquire all of the shares of CannMart.
See also: Canadian Company Lifeist Says Farewell To Cannabis Business Unit, Turns To Nutraceuticals
Key terms of the services agreement are as follows:
SCC will receive the benefit of 100% of CannMart’s revenue, less a service fee of 10% of net revenue;
SSC will help to manage the day-to-day operations of CannMart;
SSC will pay 100% of CannMart’s operating expenses;
All service fee payments paid by SSC to CannMart during the term of the services agreement will be deducted from the purchase price in respect of the acquisition of CannMart;
SSC will receive the benefit of a further purchase price adjustment to reflect $500,000 of CannMart inventory at the effective date of the services agreement; and
The services agreement will terminate upon the closing of the acquisition of CannMart.
The purchase price under the …