In an effort to further solidify the company’s foothold on Canadian operations, The Supreme Cannabis Company, Inc. (TSX: FIRE; OTCQX: SPRWF; FRA: 53S1) today announced an acquisition valued at $48 million.
The all-stock deal sees Supreme acquiring all outstanding shares of Vancouver-based Blissco Cannabis Corp. (CSE: BLIS; OTCQB: HSTRF; FRA: GQ4B:GR).
Founded in 2013, Blissco currently sells dried whole flower or pre-rolled products such as Cold Creek Kush, Cheese Quake, and White Widow. Apart from cannabis cultivation, the company also provides educational articles covering topics such as discussing cannabis usage with family members or exploring different methods of consuming cannabis.
The acquisition deal has been unanimously approved by the boards of both companies, but will still require approval by slightly more than 66% of Blissco shareholders at an upcoming special meeting.
Existing shares will be exchanged for shareholders at a rate of 0.24 common shares of Supreme per share of Blissco. As of this writing, Blissco stock is currently trading at $0.33 a share, while Supreme’s stock is trading at $1.38 a share.
Discussing the planned acquisition deal, Blissco’s Chief Executive Officer Damian Kettlewell commented:
The company currently operates an 18,000 sq. ft. cultivation facility in Vancouver and has supply agreements in place with British Columbia, New Brunswick, Saskatchewan, and Alberta. As Canadian licensed producers increasingly look to European markets for expansion, Blissco has also initiated the process of becoming EU GMP (Good Manufacturing Process) certified.
This move to acquire Blissco follows another recent expansion effort from Supreme Cannabis, with the company spinning off wholly-owned subsidiary Cambium Plant Sciences last month. That spinoff subsidiary will focus on researching and developing additional cannabis genetics both for in-house Supreme brands and other cultivation partners on a global basis.
Supreme’s subsidiary 7Acres was also recently granted approval from Health Canada to significantly boost production capacity with an extra 60,000 sq. ft. of production space.