Sunniva Inc. acquired all equity interests of California cannabis distribution company LTYR Logistics LLC for a mix of cash, common shares and warrants.
The Canadian cannabis company Sunniva also acquired a proposed distribution facility in Long Beach, Calif., which is being upgraded for compliance for cannabis distribution activities.
Consideration for the acquisition includes C$156,359 in cash, 1,436,949 Sunniva common shares at C$3.71 apiece and 718,473 performance warrants. The warrants are convertible into Sunniva common shares for no additional consideration subject to achieving certain operational milestones at C$3.71 per share.
Vancouver, British Columbia-based Sunniva, which operates large-scale cannabis production facilities, said one of the primary drivers of the acquisition was LTYR's distribution capabilities.
The Canadian cannabis company said LTYR will bolster Sunniva's position in California as a vertically integrated cannabis company with operations from seed to sale. LTYR is expected to roll out its Sunniva branded product line in the first quarter of 2019.