CannaRoyalty Corp. said it signed binding term sheets to acquire California-based Kaya Management Inc. and Alta Supply Inc.
Kaya Management is the exclusive manufacturer and license holder of rights for the Bhang brand vaporizer products, while Alta Supply distributes the vaporizer and chocolate products to third-party cannabis companies in the state.
CannaRoyalty will pay an aggregate consideration of about $1 million cash and 1.3 million shares for the acquisitions. In addition, Richard Sellers, the majority owner of Kaya Management and Alta Supply, will join CannaRoyalty's executive team following the deals' closing.
The transactions are expected to close before the end of 2017, subject to closing conditions including required approvals and due diligence completion.
