- Sire Bioscience (CSE:SIRE) has signed a definitive agreement to wholly acquire Fusion Nutrition Incorporated
- The company will issue common shares to vendors of Fusion Nutrition at 5 cents each, valuing the transaction at C$145,682
- Of this amount, a Director of Sire Bioscience has acquired and will control a portion worth $45,682
- The company expects that this acquisition will accelerate Sire Bioscience’s entry into the nutraceutical industry
- Sire Bioscience (SIRE) is up 66.67 per cent to 2.5 cents per share, with a market cap of $7.9 million
Sire Bioscience (CSE:SIRE) has signed a definitive agreement to wholly acquire Fusion Nutrition Incorporated.
The company’s current focus is on the investment, production and development of hemp, CBD and non-CBD products. It also has a view to becoming an extensive consumer packaged goods life sciences company.
Its acquisition of Fusion Nutrition should accelerate its entry into the C$70 billion sports nutrition industry. Sire will do so by leveraging Fusion’s current experience, expertise, and distribution capabilities.
The company also anticipates that the deal will position it to develop cannabinoid-infused products. This will depend on the company gaining Cannabis Health Product designation from Health Canada.
As consideration for the acquisition, Sire Bioscience will issue $145,682 in common shares to the vendors of Fusion Nutrition. Each share will come at a price of 5 cents.
Pursuant to this, a Director of Sire Bioscience has acquired and will control a portion of these shares, worth $45,682.
The total amount of shares will be released to the vendors under an escrow agreement, dated May 4 this year. As such, 50 per cent of the shares will be released six months from the date of closing, based on the satisfaction of certain terms.
The company will release the remaining shares in equal portions nine and twelve months from the date of closing. This is also subject to the satisfaction of certain conditions.
Sire Bioscience’s CEO, Brian Polla, called the acquisition part of a wider effort to position the company for ‘Cannabis 3.0’.
“This strategic acquisition not only positions us strongly for the onset of Cannabis Health Products, but also allows for distribution opportunities in additional channels including food, drug, mass, ecommerce, alternate and direct to consumer.
“We feel the acquisition of a trusted brand like Fusion will bring tremendous value to our shareholders,” he added.
Sire Bioscience (SIRE) is up 66.67 per cent to 2.5 cents per share at 2:02pm EDT.