Rapid Dose Therapeutics Wants To Buy Consolidated Craft Brands
Life science company Rapid Dose Therapeutics Corp. (CSE:DOSE) agreed to buy Consolidated Craft Brands, a packaged goods company focused on cannabis edibles and related products, for CA$5 million (US$4 million).
Under the proposed deal, Rapid Dose Therapeutics should issue 16.67 million common share units, with each unit comprising of 1 share and 1 share purchase warrant at a price of 30 cents per unit in exchange for all Consolidated Craft Brands’ shares.
Each warrant provides the holder with the right to buy one share of the company for 45 cents per share in the following two years upon finalizing the transaction.
The definitive agreement is projected to close before Feb. 15.
After the transaction is completed Consolidated Craft Brands will become a wholly-owned subsidiary of Rapid Dose Therapeutics, which will with this acquisition broaden its current operating model of creating, producing, and distributing its products.
Furthermore, Consolidated Craft Brands will bring to Rapid Dose Therapeutics its CPG and Pharma manufacturing proficiency, and a Health Canada Cannabis R&D license with created proprietary formulations.
“I am delighted with this acquisition — it brings significant benefits to our company,” Rapid Dose CEO Mark Upsdell said.
He cited several core assets the company will attain from this acquisition, including the total cash of Consolidated Craft Brands of $3 million, and proceeds of about $900,000; the expertise and assets.
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