Business
Chemesis International Inc. to Acquire Controlling Interest in GSRX Industries Inc., a Leader in Retail Cannabis Dispensaries, Distribution & Brand Development
Chemesis International Inc. to Acquire Controlling Interest in GSRX Industries Inc., a Leader in Retail Cannabis Dispensaries, Distribution & Brand Development.
About this update from Gsrx Industries Inc
[{"type":"text","content":"\nGSRX Industries is a vertically integrated cannabis company with multi-state operations and the largest medicinal cannabis dispensary network in Puerto Rico. The company has developed a retail focused approach and is currently expanding across the United States.\n VANCOUVER, British Columbia, Aug. 05, 2019 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), announces that it has entered into binding share exchange agreements (the “Share Exchange Agreements”) with certain shareholders (“Selling Shareholders”) of GSRX Industries Inc. (“GSRX”) (OTCQB: GSRX) (the “Acquisition”), pursuant to which the Company will acquire an aggregate of 42,634,124 common shares and 1,000 preferred shares of GSRX, in exchange for an aggregate of 18,915,738 Chemesis common shares to be issued to the Selling Shareholders (“Chemesis Consideration Shares”). Together with the GSRX common shares already held by the Company, completion of the Acquisition will result in the Company holding an aggregate of 54,301,122 common shares and 1,000 preferred shares of GSRX.  The preferred shares carry, in aggregate, 51% of all outstanding share voting rights of GSRX.  Accordingly, upon completion of the Acquisition, the Company will hold an aggregate 66.29% of all outstanding share voting rights.  The Chemesis Consideration Shares shall be subject to a 36-month leak out schedule. The Company has retained INFOR Financial Inc. as a financial advisor with respect to the Acquisition.  Completion of the Acquisition is expected to occur prior to August 31, 2019. Upon acquiring a controlling interest in GSRX pursuant to the Acquisition, Chemesis will effectively be a fully vertically-integrated, multi-state operator with assets in six states which includes California, Tennessee, Arizona, Michigan, Texas, and Puerto Rico, with significantly-enhanced consolidated gross revenue projections, estimated to be approximately $75,000,000 USD for the 2020 calendar year (on a fully consolidated basis) (“Estimated Revenue Projection”). The Company has extensive manufacturing, extraction, distribution, and processing capabilities, which complement and build upon GSRX’s proven ability to professionally o...