Cannasouth and Eqalis' $48.8m 'merger' plans

Mark Lucas says it eliminates cost duplication at both firms. (Image: NZME)

Mon, 19 Dec 2022

Cannasouth dropped 5% to 28.5 cents after the medicinal cannabis firm said it would pay $48.8 million for Equalis Pharmaceuticals in an all-scrip deal. It would also seek to raise another $9m to fund the enlarged group's working capital.The NZ stock exchange listed firm, based in Waikato, said it would issue 147.9m new Cannasouth shares at an issue price of 33c, doubling the number of shares on issue, and describing the transaction as a 'merger of equals'.Bay of Plenty-based Eqalis, founded in 2019, brings on board its capacity...

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