Alta Vista Ventures Ltd. (CSE:AVV) announced that it’s signed a letter of intent (LOI) to buy a 100-percent, undivided interest in RedeCan Pharm, one of Canada’s 19 MMPR licensed producers.
Details of the transaction are as follows:
Under the terms of the LOI, Alta Vista Ventures shall pay RedeCan Pharm an aggregate consideration of $9,500,000 in cash and shares subject to the signing of a definitive agreement.$7,000,000 will be paid in cash and $2,500,000 will be paid by the issuance of shares of Alta Vista at a deemed price of $0.33 per share.
Upon signing the Letter of Intent Alta Vista has paid a non-refundable deposit of $100,000 and issued 2,000,000 shares to RedeCan.The remaining payments will be made in two stages as follows:
- Alta Vista will purchase a minority interest of 28.6% on, or before, February 15, 2016 by paying $1,900,000 and issuing 2,000,000 shares.
- Alta Vista will purchase the remaining 71.4% (for a 100% interest) on, or before, February 15, 2017 by paying $5,000,000 and issuing an additional 3,575,757 shares.
In addition to the purchase price Alta Vista will pay a 10% royalty of the gross revenues of RedeCan on a quarterly basis to be paid 50% in cash and 50% in shares of Alta Vista.
Ian Foreman, president of Alta Vista, commented:
The completion of this transaction puts Alta Vista in a select group of public companies as there are only a handful of public companies with a license to cultivate and sell medical cannabis in Canada under the MMPR system. We are excited about this opportunity to continue to grow RedeCan Pharm into a leader in the industry.