Rapid Dose Therapeutics executes an LOI to acquire Consolidated Craft Brands
by CM Staff
Majority First Nations owned private company will be a subsidiary of Rapid Dose Therapeutics Corp.
BURLINGTON — Rapid Dose Therapeutics Corp., a Canadian life sciences company focused on drug and active ingredient delivery manufacturing, announces that it has entered an LOI for the acquisition of 2544737 Ontario Limited, operating as Consolidated Craft Brands, in a share transaction totalling $5,000,000.00CDN. CCB is a majority First Nations owned private company carrying on business in the development of packaged goods for cannabis edibles and cannabis infused health and wellness products.
The LOI contains terms and conditions consistent with similar transactions of this nature and will be the foundation for the Definitive Agreement which is expected to close by February 15, 2021. The Transaction is subject to negotiation of a Definitive Agreement which will contain terms and conditions of the LOI and other terms and conditions customary for transactions of the nature and magnitude of the Transaction, including completion of due diligence investigations and any necessary approvals of regulatory authorities, shareholders, and boards of directors. The selling shareholders of CCB will have the right to nominate one Director to the Board of Directors of the Company. The Transaction will be subject to a negotiated escrow agreement between the parties including timed releases of the Units over a period of 11 months.
On completion of the Transaction, CCB will become a wholly owned subsidiary of RDT to accelerate and expand the Company’s existing business model of developing, manufacturing and distributing precisely dosed health and wellness products. CCB brings a CPG and Pharma manufacturing background, a Health Canada Cannabis R&D License with developed proprietary formulations, branded products several patent-pending technologies for rapid onset beverage enhancements and a consortium of alliances including First Nation majority shareholders. CCB has no debt and approximately $3,000,000.00 of cash and cash equivalents, including a repayable advance of $500,000 to RDT in conjunction with the Transaction.