Cannabis-focused Weekend Unlimited Inc (CSE:YOLO) told investors Thursday it had closed its previously announced acquisition of 80% of California’s Canna Candys and Canna Medibles - which adds an edibles portfolio to its business.
Canna Candys is a CBD (cannabidiol) product while Canna Medibles is a THC product.
"This is a highly strategic acquisition for Weekend, following our business objective to identifying strong brands that require capital and expertise to grow, said Cody Corrubia, the president and CEO of Weekend.
"Paul Chu, CEO of Canna Candys, leads a team with tremendous product development expertise and a thriving distribution network in Southern California," he added.
"Canna Candys and Canna Medibles are perfectly positioned to expand throughout US states where recreational or medical cannabis is legal," said Chu.
"Now, as part of Weekend, we will expand our distribution to build upon the strong foundation in Southern California, adding New York, Florida, Nevada, New Jersey, Texas and on to Europe and Asia."
Notably, the Canna Candys operations have also built distribution in Southern California to 380 retail stores.
Highlights of the agreement included a forecast for same channel revenue for Canna Candys (THC) and Canna Medibles of around US$2 million. There are 31 flavours, single wrap candy and single wrap lollipop.
Weekend provided a secured loan of US$750,000 and converted this note for 51% of the equity in the company that owns these brands.
Weekend paid a further US$690,000 and is in the process of issuing shares worth US$1.44 million at a 5-day VWAP to acquire a further 29% of the company so as to own 80%.
The final 20% can be purchased during a time period ending 90 days after the first closing, for US$ 720,000 to be paid by cash, shares or a combination of the two, as agreed to by the parties.
Shares in Weekend Unlimited are unchanged on the Canadian Securities Exchange at $0.14.
It has been a busy week for the group. On Tuesday, it revealed it had picked up the option to acquire 49% of the Northern Lights Supply retail store in Nisku, Alberta.
The parties agreed to a convertible, secured 6% interest loan facility on November 15 for up to C$1.2 million, Vancouver-based Weekend Unlimited said in a press release.
Of that amount, Weekend will initially advance C$500,000.
At any time through 2022, Weekend Unlimited said it has the option to convert the full amount of its loan facility into a 49% stake in the retail store. The option is subject to approval by the Alberta Gaming and Liquor Commission.
Shares advanced 7.14% to $0.15 on Thursday in Toronto.
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