Cannabis-focused Abattis Bioceuticals Corp., Vancouver, a life sciences and biotechnology company, said it signed a nonbinding letter of intent (LOI) on Dec. 7 to acquire a 100 percent interest in NutriVida Corp., Langley, B.C., through an arm’s length transaction. NutriVida is a privately held fertilizer and nutrient company.
Abattis said NutriVida, which began operations in the spring of 2018, offers a complete line of plant products as well as a detailed “feed schedule” for soil and hydroponic systems to facilitate the harvest of large, healthy crops without sacrificing the environment. NutriVida also has a wide array of proprietary fertilizer brands specifically formulated for cannabis and cannabis cultivation, as well as other horticultural areas.
Abattis said NutriVida brings both experienced management and a heavily developed client list, two integral components the company intends to leverage as it continues to grow in Canada’s new legalization framework. It said NutriVida management has been a prominent force in the fertilizer and cultivation industry, with over 35 years of experience providing a vast wealth of knowledge and experience in researching, innovating, manufacturing, and selling all-natural, bio-safe, fertilizers and plant nutrients.
Abattis said the acquisition plays directly into its push to add to its current and future cannabis growth assets, including, but not limited to, its acquisition of Gabriola Green Farms Inc. earlier in 2018.
Abattis plans to negotiate a definitive agreement, which will include a purchase price up to C$15 million to be paid in shares based on milestones. The initial payment, which will be defined in the agreement, will be based on a deemed share price of $0.12. Based on the deemed share price the transaction will result in the shareholders of NutriVida owning 26 percent of the company.
“This is another very significant growth milestone for Abattis,” said Rob Abenante, Abattis president and CEO. “Acquiring and working with NutriVida not only adds to our company’s revenue, but also expands our cannabis growth potential going forward by improving our ability to provide quality cannabis products.
“With the recent legalization of cannabis, Canada is now setting itself up to be a global powerhouse for the provision of medical and recreational cannabis,” Abenante continued. “Abattis is working hard to be one of the best positioned companies in this quickly accelerating market, and we feel that NutriVida’s influence will directly benefit our future cultivation of cannabis moving forward.”