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Halifax marijuana producer's parent company sold for $122 million

Cannabis plant
Cannabis plant - Postmedia News

PharmaCielo Ltd., the Canadian parent of Colombian cultivator and producer of medicinal-grade cannabis oil, PharmaCielo Colombia Holdings S.A.S., announced on Thursday that it has entered into “a scheme implementation agreement” to acquire all of the issued and outstanding shares of Creso Pharma Ltd.

Creso Pharma is a medicinal cannabis company that specializes in research, development and production of therapeutic, nutraceutical and animal health products. It owns a subsidary, Mernova Medicinal Inc., which operates a cultivation/extraction and production facility in Halifax. The subsidiary is part of the acquisition, PharmaCielo stated in a news release Thursday.

According to a PharmaCielo the aggregate purchase price is an estimated US$122 million. PharmaCielo will pay US63 cents per Creso Pharma share, representing a premium of 50 per cent over the closing trading price of the Creso Pharma shares on May 31, the acquiring company stated.

The purchase price for the Creso Pharma shares will be satisfied by the issuance of PharmaCielo common shares priced at $7.6166 per PharmaCielo share.

The implementation agreement has been approved by the board of directors of each of PharmaCielo and Creso Pharma, the companies stated in the news release.

Upon closing of the acquisition, the combined company is expected to benefit from the complementary assets and synergies between PharmaCielo and Creso Pharma, the companies said in the statement.

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