Additionally,
Abattis is still undergoing its year-end financial statement audit and trading of its common shares on the Canadian Stock Exchange remains halted.
With a portfolio of over 140 laboratory-tested craft cannabis strains, Select Strains will allow for the continued differentiation of the
Abattis brand, leveraging unique craft strains in an increasingly generic, highly competitive and standardised cannabis market.
The deal stems from when a subsidiary of
Abattis, Northern Vine Canada Inc ("Northern Vine Labs"), became an authorised licensed dealer last year.
This partnership will allow
Abattis Bioceuticals Corporation the exclusive license for Cannabidiol rich hemp oil products delivered directly to licensed physicians and dispensaries.
Pursuant to the definitive agreement, in exchange for a 90% ownership interest in Gabriola,
Abattis will issue an aggregate of 59,760,956 common shares of the company at a price of CDN 0.3765 per share, and pay an aggregate of CDN 2.5m in cash to the shareholders of Gabriola, with the exception of CannaNUMUS Blockchain Inc., a company in which
Abattis owns a 49% stake, which will retain its 10% ownership stake in Gabriola.
Mike Withrow, chief executive officer of
Abattis, said that this is the first in three steps toward becoming a fully reporting issuer with the SEC.
As a result of the acquisition, Green Tree is now a wholly-owned subsidiary of
Abattis and Green Tree's products will become available through
Abattis's wholly-owned subsidiary Vergence Naturals Ltd.