(This article has been up to date from an earlier model.)
Alberta-based 51st Parallel, an affiliate of Denver-based LivWell Enlightened Health, introduced a collection of transactions Monday that may outcome within the creation of LivWell International, the businesses stated in a information launch, establishing each for global expansion.
51st will change its identify to LivWell International, and LivWell Enlightened Health will proceed to function out of Colorado underneath the prevailing identify.
LivWell International will even undertake a reverse takeover of CBi2 Capital, and pending acceptance by the respective exchanges, its shares will commerce on each the Canadian Securities Exchange and TSX Venture Exchange.
The twin itemizing might start buying and selling mid-September.
Jason Kujath, co-founder and president of 51st Parallel, informed Marijuana Business Daily that the strikes are a part of the corporate’s broader worldwide technique, with potential expansion markets within the European Union – together with Germany.
“We hope to look to the medical markets that are opening up and bring the experience that John Lord (LivWell Enlightened Health CEO) and Mike Lord (LivWell Enlightened Health COO) have built in Colorado to other jurisdictions,” Kujath stated.
LivWell’s funding in 51st final fall was believed to be the primary time an American hashish firm made a transfer into Canada to set up an built-in enterprise that provided each manufacturing and retail operations.
51st is awaiting approval from Canadian authorities to grow to be a licensed marijuana producer.
Concurrent with the creation of LivWell International, 51st stated it plans to undertake a $20 million fairness funding in GCH, a Denver-based hashish model holding firm.
In return, 51st will retain the unique Canadian licensing rights to Willie Nelson’s marijuana manufacturers owned by GCH – Willie’s Reserve and Willie’s Remedy.
The firm additionally entered into an settlement with syndicate brokers led by Eight Capital and together with Cormark Securities, Canaccord Genuity, AltaCorp Capital and Atlas Capital to increase up to 50 million Canadian dollars ($38 million) in financing.
LivWell is a medical and leisure marijuana retailer that operates over a dozen shops throughout Colorado and Oregon. The firm additionally operates its personal cultivation amenities and employs roughly 600 individuals.
Dean Heizer, government director of LivWell Enlightened Health, stated Canada’s capital and federally-regulated markets are interesting to American marijuana corporations dealing with monetary restrictions.
“The opportunity in Canada is a more enticing opportunity because it’s federally legal and we’re not treated like criminals,” stated Heizer. “We’re taking intellectual property out of Colorado and monetizing it in Canada, because it cannot be effectively monetized from Colorado.”
He stated LivWell isn’t planning to decelerate its expansion technique within the United States.
LivWell’s cope with 51st doesn’t embrace the Colorado firm’s licensee.
Matt Lamers might be reached at [email protected]
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