Business
Aegis Brands Inc. Announces Sale of Hemisphere Cannabis Co. to Kiaro Holdings Corp.
Aegis Brands Inc. Announces Sale of Hemisphere Cannabis Co. to Kiaro Holdings Corp. ...
About this update from Aegis Brands Inc
[{"type":"text","content":"\n \n \n \n Aegis Brands Inc. Announces Sale of Hemisphere Cannabis Co. to Kiaro Holdings Corp.\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n TORONTO\n \n ,\n \n July 13, 2021\n \n /CNW/ - Aegis Brands Inc., (\"Aegis\" or the \"Company\") (TSX: AEG) today announced that it has entered into a strategic transaction with Kiaro Holdings Corp. (\"Kiaro'\"), a TSX-V-listed cannabis retailer and wholesale distributor, pursuant to which it has agreed to sell Hemisphere Cannabis Co. (\"Hemisphere\"), a wholly-owned subsidiary of Aegis, in consideration for a substantial equity stake in Kiaro. In consideration for 100% of Hemisphere's common shares, Kiaro will issue 61,300,000 common shares to Aegis (having a current value of\n \n $7,900,863\n \n , based on the five-day volume weighted average price of Kiaro's common shares), plus 6,700,000 common share purchase warrants. Kiaro will issue an additional 6,700,000 shares to Aegis upon the achievement of certain commercial milestones during the first year following closing. Upon completion of the sale transaction, Aegis will hold approximately 25% of Kiaro's common shares and will be Kiaro's largest individual shareholder. Aegis' CEO\n \n Steven Pelton\n \n will join the Kiaro Board of Directors at closing.\n \n \n \"The retail cannabis space is changing rapidly in\n \n Canada\n \n . We recognize the need for scale to ensure success in this sector. As such, we are thrilled to transition ownership of Hemisphere, a premium supplier of cannabis and cannabis accessories, to Kiaro in return for a substantial equity interest in a larger company with aggressive growth plans. This transaction will enable Kiaro to build a cannabis retailer with a prominent nationwide presence and a clear path to substantially increased revenues,\" said\n \n Steven Pelton\n \n , President and CEO of Aegis Brands. \"The sale of Hemisphere will provide Kiaro with two likeminded Canadian brands, which we expect to elevate the customer experience and bolster Kiaro's growth and profitability,\" said...