Vancouver-based Chemesis has agreed to acquire 41.6 million common shares and 1,000 preferred shares in GSRX, good for a 51% majority stake
(), a retail cannabis company, reached an agreement Monday to be acquired by Inc () (OTCMKTS:CADMF) via a share exchange agreement.
Chemesis, a Vancouver-based vertically-integrated cannabis company, has agreed to acquire 41.6 million common shares and 1,000 preferred shares of GSRX, good for a 51% majority stake. All told, Chemesis now owns 66.3% of GSRX.
In return, GSRX received 18.9 million Chemesis shares. The deal is expected to close by the end of August.
The agreement bolsters Chemesis’ status as a vertically-integrated player in six US states and territories: California, Tennessee, Arizona, Michigan, Texas and Puerto Rico. With GSRX in tow, the company’s gross revenue projection for 2020 jumps to $75 million.
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GSRX brings to the table five dispensaries in Puerto Rico operating under the Green Spirit Rx brand with five additional dispensaries in the works. The company also owns The Green Room, a dispensary in Point Arena, California, and a fully-licensed distribution center which services 400 dispensaries in the region.
GSRX also operates CBD retail stores in Tennessee and Texas.
“GSRX has built an incredibly strong portfolio of retail and manufacturing assets and the company is realizing growth in all aspects of its operations,” Chemesis CEO Edgar Montero said.
“The company is incredibly excited about this acquisition and believes it will be highly accretive in terms of the potential to realize efficiencies and complement the strengths of each company’s respective business lines.”
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