Relevium Technologies Inc. said it is no longer acquiring an equity stake in CK Properties and its CannaKids brand under a previous deal.
CK Properties develops medical cannabis for pediatric and adult applications. Relevium previously agreed to acquire an initial 25% of the outstanding shares of CK Properties and CannaKids and the Canadian exclusive rights for the brand for US$2.7 million.
Instead, the Montreal-based healthcare equipment company will buy an exclusive license for the CannaKids intellectual property in Canada for $1.1 million. The renegotiated deal consideration includes $800,000 in shares and $300,000 in cash.
CK Properties will also be eligible for a 13% royalty on sales under the renegotiated license deal.
Relevium expects the transaction to close upon approval by the TSX Venture Exchange.