Calgary, Alberta-based CanadaBis Capital Inc. agreed to acquire 95% of the outstanding shares of British Columbia-based Goldstream Cannabis Inc.
Under the terms of the agreement, CanadaBis will issue 11,666,666 shares at 30 cents apiece. The transaction valued the Goldstream stake at C$3.5 million, including the existing lease and C$2 million in cash.
Malahat First Nations, which owns a 5% interest in Goldstream, intends to maintain the interest after the transaction.
Goldstream holds the right to use 13 acres of land through an existing lease agreement, with the potential to access up to an additional 300 acres and is zoned for the outdoor cultivation of cannabis.
CanadaBis President and CEO Travis McIntyre said the acquisition positions the company to acquire the hemp product volume it will need to support the growing demands for cannabidiol, hemp and concentrates.