On Monday Nabis agreed to acquire a 49% interest in Cannova Medical Ltd, which develops alternative solutions to traditional cannabis consumption.
Shares of Nabis were up 8.2% on Tuesday afternoon in Canada at C$0.66.
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The company is pioneering a new way to consume the plant using sublingual strips that are infused with active cannabis substances, which allows producers to more effectively control dosages.
“Cannova’s line of sublingual strips disrupts traditional thinking on consumption,” said Shay Shnet, CEO of Nabis. “Their team has developed an innovative solution that largely appeals to consumers looking for convenience compared to current forms of consumption such as smoking, evaporation and ingestion of oil.”
Under the terms of the transaction, Nabis will receive exclusive rights to distribute the strips in North America. The Vancouver-based company will pay Cannova US$1 million in cash and issue over 5.9 million Nabis shares to the Israeli company, bringing the total value of the deal just under C$5 million as at Monday’s closing price.
Nabis also has an option to acquire the remaining 51% of Cannova. If it decides to exercise that interest, Nabis must make a nominal cash payment and issue an additional 7.4 million shares to Cannova shareholders, held in escrow and subject to certain performance milestones.
“While we remain focused on our strategic plan for rapid expansion into limited-license states, we also pay close attention to companies that have the potential to disrupt the legal cannabis space,” Shnet said in a statement. “Cannova’s patent protected solution allows the user to get a customized, personal combination of THC, CBD, and other active ingredients that meet their personal, unique requirements in real time, and thus changing the way cannabis is consumed.”
In addition to the US and international cannabis sector, Nabis Holdings invests in assets across multiple industries, including real property, securities and cryptocurrency.
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