Debra Borchardt
Canadian-based cannabis company Atlas Global Brands Inc. (CSE: ATL) is buying privately owned GreenSeal Cannabis Company Ltd. and GreenSeal Nursery Ltd. Atlas said the acquisition is expected to be accretive to its international strategy, adding a GACP and CUMCS-certified facility with a vertical cultivation model.
Atlas said it would issue up to 11.5 million shares for the purchase. Based on Friday’s closing price of C$0.30, the cost is approximately C$3.4 million. The transaction is expected to close in the first quarter of 2023.
The deal is expected to expand Atlas’s annual production capacity by approximately 3,500 kilograms and adds a nursery program with hundreds of exotic genetics, further establishing Atlas Global’s international footprint.
“With our recent announcement of our definitive agreement with Harmony AI Holdings Ltd. and Harmony I.L. Management and Escorting Ltd. to acquire two cannabis pharmacies and a cannabis ‘Trading House’ in Israel, the plan is to accelerate our footprint and uphold our value proposition of offering consistent, quality products to patients globally,” said Bernie Yeung, CEO of Atlas Global. “With the increase in production capacity, facility export certification and addition of a nursery genetics program, Atlas Global will have a robust product assortment and future pipeline of unique cultivars to grow and export internationally.”
He added, “This acquisition is the latest step in our M&A strategy to expand our capabilities, differentiate our position in the international market, and secure our foothold for a more predictable global value chain process, driving distribution and growth.”
The company said in a statement that the deal is expected to enhance Atlas’ ability to achieve the full genetic potential of its cultivars with regard to flower composition, potency, terpene profile, and yield maximization.
“The genetic selection program generates hundreds of candidates of a particular strain, then uses data modeling to identify the seeds with the strongest lab-tested levels of both THC and terpenes, along with the most desirable traits for its indoor growing environment,” the company said.
Earlier this month Atlas announced it was buying a 51% interest in the Israeli licensed cannabis “Trading House,” intending for it to serve as the company’s hub for imports to and distribution within Israel. This deal also brings two pharmacies licensed to dispense medical cannabis in Israel. The two pharmacies are licensed to dispense medical cannabis in Tel Aviv and Jerusalem.
