Phivida Holdings Inc. Completes Acquisition of Inc.

Published: May 30, 2019

Phivida Holdings Inc. Completes Acquisition of Inc.

Phivida Holdings Inc. announced the closing of its acquisition (the “Transaction”) of Canadian e-commerce technology firm, Inc. (“Wikala”). In connection with the Transaction, David Moon, the Founder of Wikala, has been appointed to the board of directors of the Company, and he will continue to work as the President of Wikala.

“The completion of this transaction marks a new era for Phivida,” said Jim Bailey, President and CEO of Phivida. “This is more than an acquisition of a website – it’s a deal that provides us with Wikala’s team of experts in content creation and search engine optimization (SEO) as well as a captive audience of over 400,000 active users with the ambition to grow it to over 1,000,000 by the first half of 2020.”

David Moon, Founder and President of Wikala, agreed, “We are very excited to join forces with Phivida to develop a first-of-its-kind consumer trusted ecosystem for the CBD industry that addresses the desire to both gather information and purchase products online.”

Management of Phivida believes that the acquisition of Wikala will provide the Company with an opportunity to accelerate its Oki and Vida+ branded products into the North American market with the addition of Wikala’s e-commerce platform, which is currently in private beta. Combined with the recently launched new website along with the, the Transaction creates a consumer ecosystem that is expected to enhance the visibility of Phivida brands and create further brand loyalty.

The Transaction was completed on the same terms as those announced in the April 30, 2019 release. Under the Transaction, Phivida acquired all of the issued and outstanding common shares of Wikala (the “Wikala Shares”), in return for common shares of Phivida (“Phivida Shares”). Based on a volume-weighted average trading price of C$0.8547 in respect of the Phivida shares for the 20 trading days ended April 26, 2019, the consideration payable represents a total transaction value of C$22.5 million. Each holder of Wikala Shares received approximately 0.7639 Phivida Shares for each Wikala Share held, resulting in the issuance of 26,325,004 Phivida Shares to the former shareholders of Wikala. In addition, a total of 23,118,044 Phivida Shares issued in connection with the Transaction are subject to contractual lock-ups for 12 months from the closing date. Following the completion of the Transaction, there were a total of 88,633,717 Phivida Shares outstanding.