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Alternate Health to buy California-based cannabis company Four Twenty

Alternate Health Corp. agreed to buy California-based Four Twenty Inc., gaining access to its cannabis distribution, manufacturing and cultivation licenses.

Under the agreement, Alternate Health will pay Four Twenty founder George Mull 1 million company warrants. It is also entering a management contract with Mull or an entity controlled by him for a fee equal to 20% of net income, defined as revenue less all expenses from certain operations of Alternate Health to be mutually agreed.

The Canadian medical cannabis company said that each warrant can be exercised at 57 Canadian cents per share for five years from the date of issuance.

Alternate Health plans to operate Four Twenty plans primarily as a distribution and packaging consulting company and transfer its cannabis permits to other units.

Founded in 2015, Four Twenty originally provided consulting and legal advice to other companies for cannabis licensing and operations.

Alternate Health added that Four Twenty will continue to operate its consulting business, but with a focus on incentivizing exclusive distribution deals.