WOONSOCKET, R.I.--(BUSINESS WIRE)--PRESS RELEASE--Ontario-incorporated Abacus Health Products, Inc., previously World Wide Inc., has completed its merger with Delaware-incorporated Abacus Health Products, Inc. on Jan. 29, 2019. The private offering of 4 million subscription receipts was valued at US$3.75 per receipt, raising US$15 million total, and the new company’s subordinate voting shares will be traded in Canadian Dollars. Eight Capital brokered the agreement through a syndicate of agents.
Abacus, a producer of CBD-based topical pain-relief treatments, operates in multiple growing market verticals. The American Academy of Pain Medicine estimates that nearly 100 million Americans suffer from chronic pain—a market valued at US$7.40 billion as of 2017 and projected to grow 7.4 percent yearly through 2025 to an estimated US$13.00 billion.
Abacus produces two FDA-registered lines: CBD CLINIC for professional health practitioners, and the retail-facing CBDMEDIC. The former is marketed and sold via physical distribution direct to professionals, while CBDMEDIC is through retail pharmacy chains.
Both products will be sold on proprietary eCommerce websites and are presently available in all 50 U.S. States.
Per Abacus CEO Perry Antelman on the impending merger, “At Abacus our focus is on delivering safe, effective and long-lasting pain relief products. We are thrilled to reach this important milestone and become a public company which will allow us to aggressively pursue the significant market opportunity that has come about following the recent passing of the 2018 U.S. Farm Bill. We look forward to introducing our products to consumers across the United States over the coming months.”
The placement offering was secured in two phases. The first, settled on Dec. 21, 2018, resulted in gross proceeds of US$12,271,312.50. The second stage, concluded on Jan. 7, 2019, saw total gross proceeds of US$2,728,687.50. The combined aggregate gross proceeds of the placement totaled US$15,000,000. After the Merger, all 4,000,000 subscription receipts issued were converted into Class A Abacus shares, which were subsequently exchanged for subordinate voting shares at a one-to-one ratio.
Following the merger and based on the agreement between Abacus and the company, Abacus security holders will also become security holders of the company. Additionally, the company instituted a dual-class voting structure, giving Subordinate Voting Shares one vote per share, and a new class of Proportionate Voting Shares 100 votes per share. Each Proportionate Voting Share can be exchanged for 100 Subordinate Voting Shares. Moreover, the Company officially changed its name to Abacus Health Products, Inc.
The new company has received conditional approval by the Canadian Securities Exchange to be listed under the ticker “ABCS” on the CSE starting on Jan. 30, 2019. The company’s board of directors also added Perry Antelman, Jesse Kaplan, Phillip (Phil) C. Henderson, and Eyal Rosenthal. Antelman will also join the Company as Chief Executive Officer, while Henry (Hank) R. Hague, III will serve as the Chief Financial Officer.