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Abattis Bioceuticals to acquire majority stake in Canadian cannabis producer

Abattis Bioceuticals Corp. agreed to acquire a 90% stake in Gabriola Green Farms Inc., a British Columbia-based privately owned medical cannabis producer.

The companies entered a definitive agreement under which Abattis will issue 59,760,956 common shares at 37.65 Canadian cents per share and pay C$2.5 million in cash to Gabriola shareholders, except CannaNUMUS Blockchain Inc.

Abattis will also make milestone payments totaling C$10 million to such shareholders of Gabriola.

CannaNUMUS, in which British Columbia-based biotechnology company Abattis owns a 49% stake, will retain its 10% ownership in Gabriola.

In addition, Abattis has secured a right of first refusal on the remaining 10% ownership interest in Gabriola from CannaNUMUS and an option to acquire the lands on which Gabriola's operations are conducted for C$7 million until Feb. 27, 2023, from an unrelated third party.

The closing of the deal is subject to, among other things, completion of due diligence by Abattis and the receipt of any required consents, including that of the Canadian Securities Exchange.