Shoppers Drug Mart signs definitive Cannabis asset sale agreement
A pivotal move in the biopharmaceutical industry. (Benzinga)
Avicanna Inc., a company engaged in the development, manufacturing and commercialization of plant-derived cannabinoid-based products, has announced the execution of a definitive Asset Purchase Agreement with Shoppers Drug Mart.
The agreement signifies Avicanna's acquisition of assets of Shoppers' medical cannabis business, in a deal set to finalize on July 31, 2023.
The terms of the agreement stipulate that Avicanna will acquire specific assets of the Medical Cannabis by Shoppers business, which encompasses both inventory and equipment, for a sum of approximately $2.6 million. In addition to the initial purchase price, Avicanna will pay Shoppers an earn-out based on net revenues over a period of two years.
"Since the initial announcement in March 2023, we have worked diligently and collaboratively to develop and execute a seamless process for transitioning patients, and address various patient, product and operations matters through the buildout of MyMedi.ca," stated Aras Azadian, CEO of Avicanna.
Throughout the transition period, patients who rely on Medical Cannabis by Shoppers will continue to have the ability to purchase products through the existing platform. The continuity of service offered to patients underscores Avicanna's commitment to a smooth transition.
By the closing date of the transaction, Avicanna will launch its new platform, MyMedi.ca, which will serve as the new marketplace for patients to make purchases. This platform's creation is an exciting milestone for Avicanna as it expands its capabilities in the medical cannabis sector.
This business move offers the potential to reshape the landscape of medical cannabis business operations, expanding Avicanna's reach and its dedication to providing high-quality, plant-derived cannabinoid-based products to its patients. The successful execution of this transaction will further solidify Avicanna's standing as a significant player in the biopharmaceutical field.
by Javier Hasse
