Pharmaceutical wholesaler Cosmos Holdings Inc (OTCQB:COSM) announced Tuesday that it has transferred its interest in the medical cannabis group Marathon Global to the investment firm Kaneh Bosm BioTechnology Inc (CSE:KBB).
Under the terms of the share exchange agreement, Cosmos has swapped its undisclosed stake in Marathon Global for 10 million shares of Kaneh Bosm, a Canadian-listed investment firm that specializes in the acquisition of marijuana projects and cannabis-related companies.
Cosmos will control about 7% of the 141,219,108 shares of stock that Kaneh Bosm issued.
As part of the deal, Cosmos will still distribute Marathon Global’s line of medical cannabis products as well as its cannabis derivatives to its clients in countries where medical cannabis is approved for sale.
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“I am pleased to announce this agreement will provide Cosmos with additional product lines, all of which we anticipate will increase revenues and profitability on a global scale,” said Cosmos CEO Gregory Siokas in a statement.
Based in Chicago, Cosmos Holdings is a pharmaceutical wholesaler with offices and warehouses in Thessaloniki, Greece and Harlow, UK. The company has a trans-European network of over 160 clients and vendors and conducts business in Germany, the United Kingdom, Ireland, the United Arab Emirates, Denmark, Italy, France, Singapore, Spain, Lebanon, Skopje, Jordan, Sweden, Poland, Netherlands, and Greece.
Kaneh Bosm specializes in the acquisition of marijuana projects and cannabis-related companies while Marathon Global is a private Canadian company specializing in the supply of cannabis.
The use of cannabis for medical purposes is slowly being accepted by governments, with countries such as the Netherlands, Italy and Germany taking the lead with early adoption of regulations. Canada recently legalized the recreational use of marijuana.
Cosmos Holdings shares held steady at US$6.70 in morning trade.