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C21 Investments closes acquisition of Oregon-based cannabis manufacturer Swell

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C21 Investments closes acquisition of Oregon-based cannabis manufacturer Swell

C21 Investments Inc. completed its planned acquisition of Oregon-based cannabis manufacturer and distributor Swell Cos. Ltd.

The companies entered into a definitive deal in November 2018.

Under the agreement, the Vancouver, British Columbia-based medical cannabis company issued 1,266,667 common shares at a deemed issue price of $3 apiece and warrants to purchase 1,200,000 shares at $1.50 Canadian cents per share until May 24, 2024.

In addition, C21 Investments will pay the vendors US$500,000 in cash by July 1 and US$350,000 by Sept. 30.

The company will also issue 456,862 shares at a deemed issue price of $3 apiece for a total of $1.4 million on Nov. 23, 2020, and another 2,450,000 shares at $3 apiece for a total of $7.4 million on May 23, 2021, subject to reduction by 307,692 shares in certain events.

C21 Investments also agreed to issue up to an additional 6 million shares to Swell at a deemed issue price of $3 apiece over a period of up to seven years on achieving certain earn-out conditions.