Global pharmaceutical and wellness company, Isodiol International Inc., announced that they have reached an agreement to acquire 19.9 per cent of Kelowna-headquartered Compass Cannabis Clinic.
Isodiol will pay a total of $4 million, with $2 million paid in cash and another $2 million paid in stock for the 19.9 per cent of equity acquisition, subject to 36-month escrow.
“Compass has put together an excellent business plan to capitalize on the upcoming medical and retail opportunities in select provinces and to establish itself as one of Canada’s largest and most trusted cannabis clinic operations,” said CEO of Isodiol, Marcos Agramont, in a press release.
Compass Cannabis has 39 dispensary locations already secured or in development throughout Western Canada, with additional expansion expected in the near future.
“We are pleased to be forming a strategic relationship with Isodiol, the leading CBD provider in the marketplace, and to secure our patients with excellent access to a full line of the highest quality Cannabidiol products,” said Dave Martyn, president of Compass Cannabis Clinic. “In addition to our supply agreement, Isodiol’s equity participation will help strengthen our profile and support the continued expansion of our footprint and operation.”
Isodiol will also use the deal to push its family of THC-free Cannabidiol brands and products, pending regulation in Canada.
The pharmaceutical and wellness giant plans to continue its growth efforts by expanding internationally into Latin America, Asia and Europe.