Canada-based Nabis Holdings Inc. agreed to acquire a 49% stake in Cannova Medical Ltd., an Israeli cannabis-focused biotechnology company, with an option to buy the remaining 51%.
The cannabis-focused investor will pay US$1.0 million and issue 5,911,111 Nabis common shares to buy the stake, representing 2,260,500 Cannova common shares.
With respect to the remaining 51% stake, Nabis must make a nominal cash payment and issue 7,388,888 common shares to Cannova shareholders, which will be held in escrow and released subject to Cannova meeting certain performance milestones.
The issuance is subject to resale restrictions required by applicable securities laws. The deal is subject to certain customary closing conditions, including necessary approvals.
Formerly known as Innovative Properties Inc., the company changed its name to Nabis Holdings Inc., effective May 29.