Lifeist Finalizes Sale of Australian Vaporizers
Lifeist Wellness Inc. (TSXV:LFST) (FRANKFURT: M5B) (OTC:LFSWF) said on Wednesday it has sold Australian Vaporizers Pty Ltd., its wholly owned Australian subsidiary to Flora Growth Corp. (NASDAQ:FLGC).
The sale, first announced in September 2023, was wrapped up through a share purchase agreement, under which Lifeist has sold the issued and outstanding shares of Aussie Vapes to Flora, for roughly CA$900,000 ($658,439). The sum is payable by Flora issuing from treasury to Lifeist 550,000 of its common shares.
Lifeist delivered CA$400,000 of inventory (as opposed to CA$1.1 million of inventory in the previous agreement) and CA$50,000 cash (vs. C$450,000 cash in the previous agreement). The company noted that it was a CA$ 1.1 million improvement in working capital to the benefit of its shareholders.
In addition, the deal positions Lifeist shareholders to benefit from the exposure to positive cannabis regulatory developments in the U.S. market via a position in Flora common shares, with the potential for further cooperation with Flora.
Kronos Capital Partners Inc. acted as financial advisor to Lifeist in connection with the deal.
IM Cannabis Doubles Down On Germany
In the meantime, IM Cannabis Corp. (CSE:IMCC) (NASDAQ:IMCC), a medical cannabis company that has operations in Israel and Germany, said that its German subsidiary further strengthened its supply chain with an additional EU-GMP supplier, GlassHouse Botanics Inc.
The latest development doesn't come as a surprise having in mind a recent statement from CEO Oren Shuster who said IM Cannabis will double down on Germany now that recent approvals from both the German Bundesrat and Bundestag legalized the possession of marijuana.
"With the April 1st cannabis legalization in Germany, we are augmenting our focus and resources on the German market, where we expect to see the biggest growth potential and the best return on investment," Shuster said in May. "While it is still too early to make any predictions, our sales in Germany almost doubled during April."
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FLGC Price Action
Flora Growth's shares traded 1.73% lower at $1.1399 per share at the time of writing on Wednesday.
IMCC Price Action
IM Cannabis shares traded 4.20% lower at $0.5135 per share at the time of writing on Wednesday.