CannaRoyalty Completes Strategic Sale of Equity Stake and Royalty in AltMed for $8 Million to Tidal Royalty
- Sale of CannaRoyalty’s equity interest and royalty in AltMed represents approx.168% return on investment for CannaRoyalty’s shareholders.
- Agreement follows the sale of the Company’s stake in Anandia Labs and sale of exclusive Canadian license for Wagner Dimas to Aurora Cannabis
- Advances CannaRoyalty’s stated commitment to create shareholder value by realizing gains on non-core assets
All financial figures in Canadian dollars ($) unless otherwise indicated
OTTAWA, Aug. 27, 2018 /CNW/ – CannaRoyalty Corp. (CSE: CRZ) (OTC: CNNRF) (“CannaRoyalty”), a leading North American cannabis products and brands company, today announced that it has entered into a binding letter of intent (the “Agreement”) with Tidal Royalty Corp. (“Tidal Royalty”), a leading provider of royalty financing to licensed U.S. cannabis operators, whereby Tidal Royalty will acquire the Company’s equity stake and royalty entitlement in Alternative Medical Enterprises LLC (“AltMed”) for a consideration of $8 million. CannaRoyalty will maintain the right to license MÜV products in California, Nevada, Canada and other select markets.
AltMed is a licensed cannabis business operating in the state of Florida that exclusively manufactures and distributes a line of award-winning cannabis infused products marketed under the MÜV™ brand. NuTrae (doing business as MüV), is a subsidiary of AltMed and launched the MüV product line in Q3, 2016 exclusively in the Arizona medical market. As previously disclosed, CannaRoyalty currently holds an 6.14% ownership position in AltMed and has a 3.5% royalty on global net sales of the following MüV products: Transdermal patches, metered dose inhalers, and patent-pending transdermal gels.
The sale of our equity stake and royalty in AltMed advances our stated strategy of realizing value for shareholders on assets that are deemed non-core to our business. The substantial gains from our successful investment in AltMed will provide CannaRoyalty with capital to continue to expand its distribution and brand network in the California market, while offering CannaRoyalty shareholders a significant return on investment.
Marc Lustig, Chairman and CEO of CannaRoyalty.
We were early to identify the long term potential in AltMed and MüV as vital players in the North American cannabis value chain and are confident that the businesses will be valuable additions to Tidal Royalty’s diverse portfolio. As CannaRoyalty continues to grow and build a solid presence in California, we look forward to partnering with the experienced team at Tidal Royalty.
The aggregate consideration of $8 million will be in a combination of cash and Tidal Royalty’s stock. Closing of the transaction is subject to, among other things, the satisfactory completion of due diligence, which is currently underway, and the receipt of all corporate and regulatory approvals.
CannaRoyalty is a North American cannabis consumer product company currently focused on building a leading distribution business in California, the world’s largest regulated cannabis market. By building a world-class logistics platform and supporting contract manufacturing assets, the Company intends to support the growth of new and established cannabis brands. The Company believes California, home to some of the world’s most discerning consumers and a nexus of information and trends, will be the point of inception for the global cannabis brands of the future. CannaRoyalty has developed a diversified portfolio of assets within the cannabis sector, including research, infrastructure and intellectual property to support our existing brands, partner products and distribution networks. The Company’s leadership and staff combines passion and a hands-on understanding of the cannabis industry, with proven financial and legal expertise. CannaRoyalty’s shares trade on the Canadian Stock Exchange (CSE) under the symbol CRZ and in the US on the OTCQX under the symbol CNNRF.
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