MediPharm Labs is acquiring Vivo Cannabis in an all-stock deal, marking the latest consolidation move in the Canadian marijuana industry.
The acquisition is “expected to combine complementary strengths of diversified revenue in multiple markets and channels,” the companies said in a Thursday news release.
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The combined business would have more than 50 million Canadian dollars ($36.6 million) in annualized revenue based on both companies’ third-quarter performance and combined cash of about CA$30 million.
When the acquisition is complete, MediPharm shareholders will own 65%-79% of the combined company, with Vivo shareholders owning 21%-35%, depending on how much interim working capital Vivo has at closing.
Barrie, Ontario-based MediPharm and Toronto-headquartered Vivo said the combined company will have “Canadian market coverage with cultivation and manufacturing expertise, and a full suite of dried flower and derivative products with both established medical and adult-use wellness distribution channels.”
The combined company
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