RavenQuest BioMed Inc. intends to acquire 51% of Elephant Extracts' outstanding share capital.

The Vancouver, British Columbia-based cannabis producer entered into a letter of intent with Elephant Extracts, whose official business name is 1090252 B.C. Ltd., to acquire a controlling interest in the company.

Elephant Extracts may redeem the interest after it receives a license to produce under Canada's Access to Cannabis for Medical Purposes Regulations. RavenQuest will be granted an ongoing royalty of 15% of the gross revenue from production at a 10,000 square foot facility developed by Elephant Extracts.

Completion of the deal is subject to completion of due diligence, a definitive agreement and regulatory approvals.