Lifeist Wellness is set to divest and sell the CannMart Group to 1463663 B.C. Ltd. for a total aggregate consideration of CAD $5 million ("the Transaction"), subject to certain adjustments, plus the adjusted value of inventory at the time of closing.
"The decision to undertake this transaction is a pivotal step in our broader strategy to fortify the financial position of both Lifeist and CannMart by improving cash flow, streamlining operational costs, and strategically shifting the focus of both entities beyond the constraints of the current cannabis regulatory framework," said Meni Morim, CEO of Lifeist. "The shareholders from both companies benefit from the laser-like focus of each management team on their respective lines of business. Lifeist will focus on continuing the growth of its nutraceutical business Mikra and Aussie Vapes, while CannMart will benefit from operating away from the onerous demands imposed by the multilayered regulatory regime that governs Canadian public cannabis companies. Lifeist will also be positioned to greatly enhance available free cash without dilution or debt, allowing it to not only sustain but aggressively grow existing ventures while actively exploring additional strategic opportunities."
In addition, Lifeist retains upside exposure to new developments in the regulated cannabis space through purchase warrants in Tierra Corp. and is free to reenter the industry domestically or internationally if and when management so sees fit.