Canadian healthcare solution company Aleafia Health has signed a letter of intent to purchase 51% stake in adult-use cannabis retail unit, One Plant, from the Serruya Family.
Aleafia, under the agreement, will issue five million shares to the Serruya Family for the 51% stake as well as offer $5m in cash to the joint venture along with
The Serruya Family will own the remaining 49% stake in the newly formed joint venture.
As part of the deal, both the companies will establish a joint venture enabling Aleafia to enter the adult use cannabis market and related retail operations in Canada during the first phase.
According to the Aleafia, the transaction will allow the company to become a major adult-use cannabis retailer in Canada.
Aleafia CEO Geoffrey Benic said: “This joint venture positions Aleafia to capture significant national market share in the retail adult-use cannabis market in Canada.
“The Serruya family are excellent retail entrepreneurs with a proven track record in quickly scaling their businesses to global proportions.
“Our team is very excited to work with the Serruya family to achieve the same result in the global adult-use cannabis market.”
In addition, the joint venture will initially establish more than 20 retail locations in Ontario and will expand across Canada in the future. It will also sign licensing agreements with major international cannabis brands following the launch.
An integration with Aleafia cultivation facilities will support the joint venture in processing, extraction and packaging cannabis as well as listing in retail locations.
Furthermore, the board of directors of the new joint venture will include two nominees from Aleafia, two from Serruya Family and one independent.
Aleafia and Serruya family will jointly determine the management team of the joint venture company.