VANCOUVER, British Columbia, June 03, 2019 (GLOBE NEWSWIRE) PRESS RELEASE -- Nabis Holdings Inc., a leading Canadian investment company with specialty investments in assets across multiple divisions of the cannabis sector, today announced that it has entered into an agreement to purchase 2,260,500 common shares, representing a 49% interest, of Cannova Medical Ltd., a provider of innovative solutions for cannabis consumption, and to acquire the remaining 51% interest at the option of Nabis.
Cannova, based in Israel, has developed an alternative solution for cannabis consumption using an organic sublingual strip infused with a variety of active cannabis substances. The product has proven qualities that allow producers to more effectively control dosage quantities, utilizing only organic substances and eliminating unintended side effects. In connection with the Transaction, Nabis will have Exclusive Distribution rights in North America.
“Cannova’s line of sublingual strips disrupts traditional thinking on consumption. Their team has developed an innovative solution that largely appeals to consumers looking for convenience compared to current forms of consumption such as smoking, evaporation and ingestion of oil,” said Shay Shnet, CEO & Director of Nabis. “While we remain focused on our strategic plan for rapid expansion into limited-license states, we also pay close attention to companies that have the potential to disrupt the legal cannabis space. Cannova’s patent protected solution allows the user to get a customized, personal combination of THC, CBD, and other active ingredients that meet their personal, unique requirements in real time, and thus changing the way Cannabis is consumed. Their cutting-edge platform designed for home use looks similar to a countertop espresso/coffee machine, however, it possesses next generation ability to combine various active ingredients. With the acquisition of Cannova’s unique technology, we will be well positioned to capitalize on the growth in popularity of consumable cannabis.”
“We’re excited to team up with Nabis to provide Cannabis users a safe, accurate and discrete way to consume Cannabis. The Nabis team, their experience and established network of Cannabis related portfolio will help boost Cannova to become a cutting-edge leader in the space,” said Omri Schanin, Cannova founder & CEO.
In consideration for the 49% interest, Nabis will pay Cannova US$1,000,000 and will issue to Cannova an aggregate of 5,911,111 common shares of Nabis. To exercise its option to acquire the remaining 51% interest, Nabis must make a nominal cash payment and issue to the Cannova shareholders 7,388,888 Common shares, which will be held in escrow and released subject to Cannova achieving certain performance milestones.
The securities issued pursuant to the Transaction will be subject to resale restrictions as required by applicable securities laws.
Closing the Transaction remains subject to certain customary closing conditions, including obtaining all necessary approvals.
