Akanda Corp. (NASDAQ:AKAN) has closed the acquisition of Holigen Limited from The Flowr Corporation (TSXV:FLWR) (OTCPK:FLWPF), accelerating Akanda’s seed-to-patient business model in the EMEA region, improving the company’s ability to meet growing demand for medical cannabis and positioning it for adult use markets as regulations evolve.
“Holigen provides the added superior genetics, capacity, and route-to-market Akanda needs to ensure that we capture more than our share of the rapidly emerging cannabis market across the EMEA region,” stated Tej Virk, CEO of Akanda. “Together with Holigen, we are positioned to be a leader in today’s medical cannabis environment and to have the ability to scale to the recreational opportunity as it unfolds. Now that the acquisition has closed, I look forward with to working with Tom Flow and his team to leverage the platforms of both companies.”
Under terms of the agreement, Akanda acquired 100% of the issued and outstanding shares of Holigen for a combination of approximately $3.0 million in cash, 1.9 million Akanda common shares, and the assumption at RPK of approximately $4.3 million of debt which is non-recourse to Akanda. In addition, to further align Akanda and Flowr, concurrently with the closing of the acquisition, Akanda purchased 14.28 million Flowr common shares for aggregate gross proceeds to Flowr of approximately $790,000 at a price per share of CA$0.07 ($0.054). Akanda has provided at least $678,000 of interim funding to Holigen to support its working capital needs prior to closing.
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