Pivot Pharmaceuticals Inc. plans to acquire all issued and outstanding shares of privately held ERS Holdings LLC.
The biopharmaceutical company will pay around $1 million and issue 5 million Pivot shares to owners of the U.S.-based agriculture company. The shares are subject to a six-month restriction with the first 25% being released six months after closing the deal and 25% to be released every quarter thereafter.
Canada-based Pivot will pay an additional $75,000 upon closing to cover ERS' prior liabilities and cost for closing and $20,000 in non-refundable fee upon execution of the letter of intent.
The deal is subject to customary regulatory and closing conditions, including Pivot's satisfactory completion of due diligence by Jan. 31, 2018, and the board approval for both the companies.
The acquisition will add ERS Holdings' patented technology for cannabis oil infusion in food and beverage products to Pivot's portfolio.