XPhyto Therapeutics Corp (CSE:XPHY), a medical cannabis company, announced a deal Monday to acquire Vektor Pharma TF GmbH, a German narcotics manufacturer.
Through a definitive share purchase agreement, XPhyto will pay roughly $515,540 in cash, plus 200,000 shares of stock, about $589,188 in units of capital, and issue a pair of convertible debentures worth $294,594 and $220,945 respectively.
The capital units, worth $1 each, equate to one common share and one purchase warrant exercisable into one common share of the company at an price of C$1.00 per share for a period of three years from closing.
Vektor specializes in thin therapeutic films, such as skin patches and oral strips, and possesses a slate of narcotics licenses covering traditional and cannabis-related medications.
"XPhyto is building a next generation cannabis company focused on medical formulation, clinical validation and emerging European markets," XPhyto CEO Hugh Rogers said in a statement.
"We believe that Vektor will add significant long-term value at every level of our business, from clinical trial expertise and drug manufacturing capability to their German cannabis and narcotics import licences and strong relationships with the German health authority," Rogers said.
The agreement is expected to close by September 16 and is subject to regulatory approval.
XPhyto is based in Vancouver, but has its sights set on European markets. The company also owns Bunker Pflanzenextrakte GmbH, a German cannabis cultivation and extraction company.
The company's stock held flat at $1.30 on Monday.
Contact Andrew Kessel at [email protected]
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