CanadaBis Capital Acquires Goldstream Cannabis Inc.
CALGARY, Aug. 13, 2019 – CanadaBis Capital Inc. (“CanadaBis” or “the Company”) is pleased to announce it has entered into an agreement to acquire 95% of the outstanding shares of Goldstream Cannabis Inc. (“Goldstream”) located in British Columbia. Goldstream holds the right to use 13 acres of land, through an existing lease agreement, with the potential to access up to an additional 300 acres and is zoned for the outdoor cultivation of cannabis. Malahat First Nations currently holds a 5% interest in Goldstream and has indicated their intention to maintain this interest after the transaction.
Under the terms of the agreement CanadaBis will acquire ownership of 95% of Goldstream by issuing 11,666,666 common shares of CanadaBis priced at $0.30 per share, subject to regulatory approval. The shares issued are subject to certain share sale restrictions over 24 months. The acquisition of the 95% interest is valued at $3,500,000, which includes the existing lease, $2 million in cash and no outstanding liabilities.
Goldstream’s property is strategically located in a hospitable environment and contains a high level of organic matter in the soil, making it ideal for outdoor hemp production. The flowers and leaves of the hemp plant are rich in cannabinoids, notably the non-psychoactive compound Cannabidiol (CBD). CBD, which has gained increasing popularity as of late, has been found to be effective in treating a wide variety of ailments, producing an increase in demand from consumers for products containing CBD.
“The acquisition of Goldstream Cannabis allows CanadaBis to continue to expand our business as a vertically-integrated leader in the emerging cannabis marketplace,” said President & CEO, Travis McIntyre. “As a company that is focused on long-term success, this agreement positions us to acquire the hemp product volume we will need to support the growing demands for CBD, hemp and concentrates.
Stigma Grow currently operates 22,000 sq/ft of production space and plans to expand this area to 66,000 sq/ft later this year. The Company received a standard cultivation and processing license from Health Canada on March 8, 2019 and has recently harvested its second crop. Stigma is currently working on developing and promoting a strong Alberta brand focused on catering to high-quality experiences. Proudly offering a craft product with optimal cannabinoid profiles, Stigma is the first Health Canada-licensed producer operating in the Red Deer area.
For further information: on CanadaBis Capital, 1998643 (Stigma Grow), or INDICAtive Collection (the Company’s retail brand) please visit www.canadabis.com or contact: Investor Relations, 1-888-STI-GMA1, email@example.com