WeedMD - Interim CEO and Executive Chair, George Scorsis
Interim CEO and Executive Chair, George Scorsis
Source: America Daily Post
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  • WeedMD (WMD) intends to acquire CannTx Life Sciences to create a cannabis cultivation and consumer-centric product portfolio
  • CannTx is a highly regarded cultivator that specializes in tissue propagation, agricultural research and craft cultivation
  • The acquisition carries the potential for improved margins and international expansion supported by extensive scientific expertise
  • WeedMD produces and distributes cannabis products for the medical and adult-use markets
  • WeedMD (WMD) closed the day down 2.61 per cent trading at $0.28 per share

WeedMD (WMD) intends to acquire CannTx Life Sciences to create a cannabis cultivation and consumer-centric product portfolio.

The company signed the letter of intent to acquire CannTx in an all-stock transaction.

CannTx, which operates out of Guelph, Ontatio, is a highly regarded cultivator that specializes in tissue culture and micropropagation techniques, agricultural research, craft cultivation and the processing of new cannabis products such as rosin and hash.

CannTx’s Steadystem Solutions program collects tissues from donor plants and regenerates them using an in-vitro platform to maintain historical cannabinoid and terpene profiles, while removing bacterial, fungal, entomological and viral pathogens.

Benefits to WeedMD and CannTx

  • WeedMD’s low-cost production platform and robust sales channels are expected to generate improved margins with the addition of Royal City Cannabis
  • WeedMD will leverage CannTx’s international relationships to market new consumption methods to emerging cannabis markets in the Americas and Europe
  • With its limited overlap in talent, CannTx’s management team will bring extensive propagation, agricultural and science-based experience, as well as strong industry and client relationships

Upon integrating CannTx’s operations, including Steadystem Solutions and Royal City Cannabis, the combined company will constitute one of the most comprehensive genetic banks in the industry, further strengthening WeedMD’s robust cultivation and processing activities for new strain and product expansion.

The transaction is expected to close in mid-year 2021.

George Scorsis, Interim CEO and Executive Chair of WeedMD, commented,

“With the acquisition of CannTx, we will now be able to participate across all market segments with a strong portfolio of refined cannabis brands and products that consumers are moving towards. While working together in the genetic preservation and regeneration of our prized strains, we recognized that merging our talent and companies will solidify our respective businesses and together, move us closer to profitability.”

Mike Abbott, President, CEO and co-founder of CannTx, added,

“Since 2013, we’ve been saying that the key to success in the cannabis marketplace will be product differentiation through innovation and high standards of quality and consistency. We appreciate that our vision is warmly welcomed by the brand-focused leadership at WeedMD.”

WeedMD is the parent company of WeedMD RX and Starseed Medicinal, both licensed producers and distributors of cannabis products for the medical and adult-use markets.

WeedMD (WMD) closed the day down 2.61 per cent trading at $0.28 per share.

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