Vancouver, Canada-based Liberty Leaf Holdings Ltd. is acquiring a majority interest in Just Kush Enterprises in a cash-and-stock deal.
The company may acquire shares representing an approximately 60% stake in Just Kush for about C$150,000 and the issuance of 6 million of its common shares upon the closing of the deal.
Liberty said 3 million shares will be held in escrow and released when Just Kush obtains certain milestones related to the Access to Cannabis for Medical Purposes Regulations, or ACMPR, license. Just Kush is in the final stages of obtaining the license.
Under the share purchase agreement, Liberty will issue an arm's length party the lesser of 10% of its total issued and outstanding common shares as of the date of execution of the agreement or 1 million common shares of the company.
Liberty plans to submit an abridgement to Just Kush's ACMPR license application to include manufacturing and distributing cannabis oils and extracts to the license. It also plans to increase Just Kush's vault capacity to level eight, making it capable of storing C$6.25 million worth of product from the current level seven that can hold up to roughly C$1.3 million worth of product.
The acquisition will make Just Kush the second company to be acquired by Liberty which has a late-stage ACMPR license application, after it acquired Road Ventures in 2016.
