- Cannabis company, Pharmadrug (CSE:BUZZ) has entered a definitive agreement to acquire retail company, Super Smart
- Through the acquisition, Pharmadrug will gain entry into the psychedelics market in The Netherlands
- The company believes that this will complement its existing cannabis distribution business in Europe
- While the proposed transaction is not set in stone, the company expects to complete it in early June, 2020
- Pharmadrug (CSE:BUZZ) remains unmoved and is currently trading at C$0.09 per share
Cannabis company, Pharmadrug (CSE:BUZZ) has entered a definitive agreement to acquire retail company, Super Smart.
Super Smart, also known as Interrobang, is a company with a focus on consolidating the smartshop market in The Netherlands. Smartshops are Dutch establishments which specialise in selling psychoactive substances, such as psychedelic truffles.
Psychedelic truffles are a version of magic mushrooms that grow underground and contain the compound psilocybin.
Pharmadrug has agreed to acquire all the issued and outstanding shares of Super Smart, to enter the psychedelics market. The company already has an existing cannabis distribution business in Europe, which this acquisition would complement.
After the proposed transaction, Super Smart will work to acquire smartshops, bringing psychedelics into Pharmadrug’s offering. The company may also use some smartshops as retail outlets for its existing cannabis products and paraphernalia.
If the transaction goes ahead, each issued and outstanding share of Super Smart will be exchanged for one common Pharmadrug share.
The company expects that at the time of closing, Super Smart will have 44 million issued and outstanding shares, C$2.5 million senior secured convertible debentures, 33 million common share purchase warrants, and 3,478,400 finder options.
Pharmadrug does not expect that the proposed transaction will dramatically alter its executive team. The company’s current Chairman, CEO, and CFO will continue in their roles, and oversee the integration of Super Smart.
It’s likely that Super Smart’s management team will join Pharmadrug as senior business unit managers. Super Smart’s current CEO, Harry Resin, will continue to run the Super Smart division within Pharmadrug after the transaction completes.
The proposed transaction is subject to certain conditions, including approval from the boards of directors of both companies. The approval of Pharmadrug’s shareholders, and the Canadian Securities Exchange, will also be necessary.
If the conditions of completion are not met, the transaction might not go ahead. However, the company remains confident that all conditions will be satisfied, and the transaction will complete in early June of this year.
Pharmadrug (CSE:BUZZ) remains unmoved and is currently trading at C$0.09 per share at 1:35pm EDT.