International Cannabrands Inc. acquired a 51% stake in cannabis company La Vida Verde, Inc. and closed the second phase of the transaction.
The company invested $1.3 million, issued 25,225,161 common shares and issued $2 million in the form of promissory notes to the Santa Cruz, Calif.-based La Vida.
La Vida cannot sell more than half of the issued shares in 2019. The investment was used in expanding staff and manufacturing capacity, according to a Jan. 7 press release.
Under the agreement, half of the notes will be due March 31 and the rest are due Oct. 31 and carry an interest rate of 5% per annum.
Denver-based International Cannabrands will make the remaining working capital investment of $700,000 in La Vida in April.
Under the transaction, International Cannabrands President and CEO Steve Gormley will be appointed to the board of La Vida. Also, either of the founders of La Vida, Eric Hara and Bryce Berryessa, or their nominee will join the board of International Cannabrands.