Canadian cannabis company Sunniva Inc. entered into an agreement to sell Natural Health Services Ltd. to The Clinic Network Canada Inc. for C$9 million.
Natural Health Services operates seven clinics in Canada specializing in medical cannabis. The Calgary, Alberta-based company's proprietary technology infrastructure assists physicians and patients to comply with the rules of Health Canada.
Under the agreement, the purchase price will be paid via C$4.5 million in cash and C$4.5 million through the issuance of 4.5 million preferred shares of The Clinic Network Canada.
The deal is expected to close in the fourth quarter.
"The cash proceeds from this sale will be directed towards the completion of the Cathedral City facility and the ongoing development of our cannabis brands in California," Sunniva CEO Anthony Holler said.
The Clinic Network Canada is a subsidiary of Cura-Can Health Corp. and provides out-of-hospital chronic pain management services in Canada.
