True Focus is known for its popular, all-natural, patent-pending oral spray which works to blunt the effects of THC overconsumption
Cannvas MedTech Inc () (OTCMKTS:CANVF) said Wednesday that it has signed up for a share exchange deal with 1216165 BC Ltd, better known as True Focus International, to get the exclusive rights to market its suite of products, and at the same time announced plans to change the company's name to Eurolife Brands Inc.
Cannvas shares surged 27.7% higher to C$0.28 in lunchtime trade in Canada.
The Vancouver digital cannabis education and analytics company said in a statement that the deal would give it access to True Focus International’s intellectual property portfolio across South America and "in select markets" in Europe for 10 years.
True Focus is best known for its popular, all-natural, patent-pending oral spray which works to blunt the effects of THC overconsumption.
READ: Cannvas MedTech provides cannabis education while harvesting the power of Big Data
Cannvas MedTech said it will fund the C$4 million deal by issuing 20,000,000 shares at an aggregated price of C$0.20 per share, with the transaction expected to close within 14 days.
In addition, Cannvas said it issued 2,800,000 shares at a price of C$0.23 per share to insiders for milestones that were achieved on deadline.
The company said that through its Cannvas.Me and other data platforms it will expand the True Focus brand into “emerging regions” where CBD is legal.
At the core of Cannvas' business is its website, Cannvas.Me, one of five platforms the company has developed. The website provides online cannabis courses for free and offers the public the chance to read about cannabis’ medical applications in materials and white papers put out by physicians.
"Just as Cannvas identified a gap in credible cannabis education and filled that void with our unbiased Cannvas.Me educational platform,” said Steve Loutskou, chief operating officer of global markets, at Cannvas MedTech.
“We recognize the need for active cannabis consumers to have a safety net in case of overconsumption. True Focus mitigates that risk with a discreet and portable oral spray."
Cannvas MedTech said it plans to leverage its analytics intelligence based on pre-transactional consumer behavior patterns to expand the True Focus brand across Europe and South America.
South American HQ in Medellin, Colombia
The company has settled on Medellin, Colombia as its South American headquarters and says the region is “ripe for investment” with 600 million potential customers, and growing openness to legalizing cannabis.
According to research by Prohibition Partners, the Latin America cannabis industry is projected to grow to $12.7 billion by 2028, with medical cannabis commanding $8.5 billion of the market.
In addition, 10 of the 11 countries reviewed in Prohibition Partners' report have legalized medical cannabis in the last two years, with the exception of Panama. Chile and Mexico are seen as the main drivers of growth over the next decade. Chile legalized medical cannabis in 2015 and Mexico in 2017.
Name change to Eurolife Brands Inc
In a separate statement on Wednesday, the company also said it intends to change its name from Cannvas MedTech Inc to Eurolife Brands Inc to reflect the direction of the company's business activities.
The company said it has secured the trading symbol "EURO".
"We are excited to rebrand as EuroLife Brands as we expand beyond North America, bringing cannabis education and some of the most popular brands to the international markets while aggressively executing on strategic M&A opportunities," Loutskou said.
He added that the company was confident the rebranding effort would maximize shareholder value as the company built EuroLife Brands into an “industry leader” in Europe and South America.
Concurrent with the name change, the company said it will be completing a sub-division of its issued and outstanding common shares on the basis of four new shares for every one share held.
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Contact Uttara Choudhury at [email protected]
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