Chemesis International Inc. agreed to acquire 42,634,124 common shares and 1,000 preferred shares of Dorado, Puerto Rico-based cannabis dispensaries operator GSRX Industries Inc. from its shareholders.

Vancouver, British Columbia-based Chemesis will issue 18,915,738 common shares to the selling shareholders over a 36-month schedule subject to certain conditions.

The preferred shares represent 51% of all outstanding share voting rights of GSRX. Chemesis expects to complete the transaction before Aug. 31 and will then own a 66.29% stake in GSRX.

Chemesis issued 7,291,874 common shares to acquire a 19.9% stake in GSRX in April.