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Be the first with the news that moves the market- Mota Ventures (CSE:MOTA) has completed its acquisition of Spain-based CBD company Sativida
- Sativida was purchased from Sativida OU, to which Mota Ventures will license the acquired intellectual property and tradenames
- Mota Ventures issued 5,496,221 common shares for the acquisition, at a price of 56.89 cents each
- The acquisition will facilitate the expansion of Mota Venture’s subsidiary, First Class CBD, into the European market
- Mota Ventures (MOTA) is currently trading steady at C$0.21 per share
Cannabis company Mota Ventures (CSE:MOTA) has completed its all-stock acquisition of Spain-based CBD company Sativida.
Sativida is an online CBD product retailer, facilitating various European markets including Spain, Portugal, Austria, Germany, France, and the UK. The company has become the number one search-ranked online retailer of CBD products in Spain and Mexico.
Mota Ventures acquired the company from its parent entity, Sativida OU.
Per the terms of the agreement, Mota Ventures will license the acquired intellectual property and tradenames back to Sativida OU in exchange for gross revenue royalties.
Mota Ventures CEO, Ryan Hoggan, said the acquisition of Sativida is a critical building block in the company’s European expansion.
“Mota’s US operation, First Class CBD, is about to enter the European market. We expect the acquisition of the Sativida brand to expedite this expansion.
“Furthermore, our partnership with Unified Funding, LLC (the e-Commerce platform behind the success of First Class CBD), will allow us to bring the Sativida brand to the US market as well,” he added.
As consideration for the transaction, Mota Ventures issued 5,496,221 common shares to Sativida OU, at 56.89 cents each.
The transaction will also include an earn-out component made up of three milestone payments.
Each milestone payment will be based on a 400 per cent multiple of Sativida’s revenue until the sum of the initial shares and the milestone payments reaches C$6,210,000 (€4,000,000). Following this, the multiple will be reduced to 100 per cent.
Sativida founder, Noah Laith, commented on the company’s new phase.
“Joining Mota is a major step for Sativida that will provide access to the capital, connections, and infrastructure necessary to grow our business in Europe and internationally,” he said.
Mota Ventures (MOTA) is currently trading steady at $0.21 per share, as of 2:23pm EST.
