AgraFlora Organics International Inc. is planning to launch a takeover bid directly to the shareholders of cannabis company Eviana Health Corp.
The company will offer 1.694915 AgraFlora shares for every Eviana share held, valuing Eviana shares at an offer price of 50 Canadian cents apiece. AgraFlora said its offer price represents a 49.25% premium to the market price of Eviana at the close of Aug. 9.
Vancouver, British Columbia-based Eviana Health produces and sells cannabinoid products for use in consumer healthcare, pharmaceuticals, nutraceuticals, cosmeceuticals and other health and wellness sectors.
On July 26, AgraFlora presented the proposed business combination to Eviana's board but failed to receive a response. AgraFlora said it still intends to hold discussions with Eviana's board.
The takeover offer is expected to commence over the coming weeks.
Haywood Securities Inc. is acting as AgraFlora's financial adviser, with Laurel Hill Advisory Group as the company's communications specialist and information agent.