Canntab Therapeutics Limited (CSE:PILL) (OTCQB:CTABF) has closed on the $1,018,000 purchase of cannabis-processing equipment and leasehold improvements from CMAX Technologies Inc in Ontario.
In a statement Tuesday, Canntab said the purchase price was based upon third-party valuations it had ordered.
The purchase price was satisfied through the issuance of 1,996,078 common shares of the company at $0.51 each. A deposit of 200,000 shares was paid to CMAX shortly after the execution of the asset purchase agreement.
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Canntab also said it closed its binding asset purchase agreement with Pharmagenerics Solutions Inc (Pharma) to purchase cannabis-processing equipment.
The purchase price of those assets was $300,000, satisfied through the issuance of 588,235 shares at $0.51 each. Joshi Laxminarayan, Canntab’s chief scientific officer, is the sole officer, director and shareholder of Pharma.
According to Canntab, CFO Richard Goldstein, President Jeffrey Renwick, Secretary Barry Polisuk and Laxaminarayan are shareholders of CMAX Technologies.
Polisuk holds 1.44% of CMAX's outstanding common shares; Goldstein 11.19%; Renwick 38.83%; and Laxminarayan 18.04%.
Canntab, based in Ontario, is focused on the manufacturing and distribution of a suite of hard pill cannabinoid formulations in multiple doses and timed-release combinations. It holds a Cannabis Standard Processing & Sales for Medical Purposes Licence, a Cannabis Research Licence, and an Industrial Hemp Licence from Health Canada.
The company is also in the process of establishing a CBD manufacturing and distribution business in the US, through its wholly-owned US subsidiary.
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