CannaRoyalty Corp., a leading North American cannabis products and brands company, announced today that it has closed the previously announced acquisition of RVR Distribution. With the closing of the Acquisition, as formerly disclosed, CannaRoyalty will assume the merged California operations of RVR and Alta Supply (together, the “Companies”). Additionally, Ted Simpkins, Co-Founder and CEO of RVR joined the Company’s Board of Directors, effective October 18, 2018.
Marc Lustig, CEO of CannaRoyalty commented, “The close of this Acquisition is a major milestone as we work toward our objective of becoming the premier home for promising growth brands in the California market. I am proud to welcome co-founders and experienced consumer products distribution executives Ted Simpkins and Henry Pilger to the team. As a combined organization we now have the pieces in place to scale our California operations and rapidly leverage our brand IP and expertise into additional global markets such as Canada. Q2 marked a financial inflection point for CannaRoyalty and this is just the beginning. We expect the closing of the Acquisition and the resulting acceleration of our growth plans to generate a sustained, multi-quarter step change in our revenue run rate.”
- All consideration will be in CannaRoyalty Shares and issued in installments.
- The vendors will receive exchangeable shares that will enable the recipients to acquire 70,000 Class A CannaRoyalty Shares (21,000 shares at close and 49,000 shares over the next 24 months) for no additional consideration.
- Each Class A Compressed Share shall be convertible into 100 Common Shares.
- On closing, it is anticipated that CannaRoyalty will have 56,318,410 common shares outstanding and 83,393,404 shares outstanding on a fully diluted basis.