$48 million deal would see Supreme Cannabis acquire remaining shares of Blissco Cannabis it doesn’t already own

Acquired company to operate as Supreme Cannabis’ health and wellness business

Comments

Supreme President and Founder John Fowler (right) and Director, Product Development and Planning Pete Shearer (left). Peter J Thompson

Supreme Cannabis Company Inc.’s move to acquire all issued and outstanding common shares of Blissco Cannabis Corp. that it doesn’t already own is meant to quicken its advance towards becoming a wellness-focused cannabis company.

With a value of approximately $48 million, the arrangement is an all-stock transaction, notes a statement from Supreme Cannabis, a global diversified portfolio of distinct cannabis companies, products and brands.

Supreme Cannabis and Blissco Cannabis have entered into a definitive arrangement agreement for the acquisition by way of a court-approved plan of arrangement under British Columbia’s Business Corporations Act, the press release states.

The acquisition will complement Supreme Cannabis’ growing brand portfolio and accelerate its growth as a premium wellness-focused cannabis company, while Blissco Cannabis shareholders will continue to “participate in the upside of combined companies, and benefit from enhanced liquidity and access to capital,” it notes.

“Blissco will join Supreme Cannabis’ exclusive portfolio of premium brands and operate as Supreme Cannabis’ health and wellness business,” the company statement notes. Blissco Cannabis’ “established premium wellness brand provides a platform from which the combined company will launch new products for this growing consumer segment.”

Langley, B.C.-based Blissco Cannabis is a multi-licensed processor, cultivator and distributor of premium cannabis. It operates an 18,000 sq. ft. production facility with advanced extraction capabilities and has completed phase 1 of the construction of its state-of-the-art cannabis oil extraction lab.

“Supreme Cannabis is the best-positioned company in the cannabis space to help Blissco achieve its ambition of delivering innovative, quality-assured, full-spectrum cannabis products to the world,” Blissco CEO Damian Kettlewell says in the statement. “By merging with Supreme Cannabis, Blissco shareholders will benefit from the combined expertise of both companies in growing premium cannabis brands, producing and procuring high-quality inputs, commercializing new products and ensuring regulatory compliance,” Kettlewell says.

“This transaction will allow Blissco to focus its business around the production and commercialization of cannabis oils and topicals for the premium wellness consumer,” notes Navdeep Dhaliwal, CEO of Supreme Cannabis. “Through this transaction, we will combine best-in-class processes, commercialization, marketing and brand-building expertise and skilled management, ensuring we continue to achieve our vision to improve global well-being with cannabis,” Dhaliwal continues.

Upon closing the arrangement, Kettlewell will continue to lead Blissco Cannabis. He has committed to remaining employed at Supreme Cannabis and retaining at least 75 percent of his shares for a minimum of two years.

The arrangement will require approval of two-thirds of the votes cast by Blissco Cannabis shareholders represented in person or by proxy at a special shareholders meeting. Closing of the arrangement is subject to court and regulatory approvals, as well as other customary conditions.

 

Want to keep up to date on what’s happening in the world of cannabis?  Subscribe to the Cannabis Post newsletter for weekly insights into the industry, what insiders will be talking about and content from across the Postmedia Network.