-- Red White & Bloom Brands (RWB.CN) on Monday said its Emblem Cannabis unit was selected as the winning bidder in a court-supervised sale process tied to the insolvency of Ayurcann Holdings and Ayurcann under the Companies' Creditors Arrangement Act.
The deal is structured as a share purchase, under which Emblem will indirectly acquire Ayurcann's business, assets, licenses and operations by buying 100% of its newly issued shares. Certain assets and liabilities will be excluded and kept with an Ayurcann affiliate.
Upon closing of the transaction, Emblem said it will acquire a "comprehensive processing and manufacturing platform", including established brand portfolio, production facility and equipment, commercial relationships and records, and licenses..
"We are very pleased that Emblem has been selected as the successful bidder for Ayurcann," said Colby De Zen, president of RWB. "This acquisition is highly strategic and will immediately scale our Canadian platform with a leading portfolio in the fastest-growing product categories and a national distribution footprint across more than 2,500 retail locations. Beyond the brands and infrastructure, we are acquiring a proven operating platform with meaningful synergies across supply chain, manufacturing and overhead.."
Shares of the company closed unchanged at $0.02 on Canadian Securities Exchange.