Cannasouth Limited and Bay of Plenty-based medicinal cannabis company Eqalis Group New Zealand Limited have announced a 50:50 merger.
The merger, structured as a purchase of 100% of Eqalis Shares, will see the existing number of Cannasouth shares issued to Eqalis shareholders for a notional sum of $48.8 million.
Upon completion of the merger, three new directors appointed by Eqalis will join the Cannasouth board and Eqalis Managing Director Greg Misson will be appointed Chief Innovation Officer of Cannasouth.
Both companies anticipate the merger to lower the cost of medicinal cannabis to patients and create a more resilient business with a diversified product and services portfolio.
Subject to Cannasouth shareholder approval, completion of the merger is expected to occur in late March 2023.
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