Atlas Global Brands signed a binding letter of intent to acquire 51% of an Israeli-licensed cannabis “Trading House,” strategically located in Tel Aviv. If the transaction is completed, the Company plans to use this “Trading House” as its hub for the import, storage, and distribution of cannabis in Israel. A “Trading House” is an entity licensed to purchase, trade, and store cannabis. To the best of Atlas’ knowledge, this is the only Trade House in Tel Aviv, and it will give Atlas the ability to store cannabis for pharmacies in the greater Tel Aviv area and provide them with a just-in-time supply of cannabis. Ownership of a Trading House adds another element to the Atlas value chain.
Two pharmacies are licensed to dispense medical cannabis, one in Tel Aviv and the other in Jerusalem, in prime locations. Unlike most cannabis pharmacies in Israel, these pharmacies were designed from the outset for the sale of cannabis. If the transaction is completed, these dispensaries will help position Atlas as a premium supplier of cannabis in the Israeli market and expand Atlas’ retail presence in Israel.
The Proposed Transaction will be structured as a share exchange pursuant to which the vendors will be issued an aggregate of 2,699,472 common shares in Atlas at a deemed price of $1.00 per share and, at closing, will make an inter-company loan to the purchased entities in the amount of ILS 1,000,000 (approximately CAD $391,000). The final structure of the Proposed Transaction will be determined by the parties following receipt of tax, corporate, and securities law advice.
“Investing in the infrastructure to expand our supply and distribution capabilities in Israel strengthens our global footprint in a core market,” said Sheldon Croome, Interim CEO of Atlas Global. “These transactions enable us to meaningfully scale our distribution while introducing more products and brands, both in-house and from brand partners. We are incredibly excited for the future of Atlas and look forward to continued growth in key markets around the world.”
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