Bhang Inc. has signed a letter of intent to acquire 1352135 B.C. Ltd. so it can access patents and intellectual property related to minor cannabinoids, cannabis, THC and psychedelics with the goal of building Bhang's portfolio beyond chocolate and edible cannabis brands.
"We are innovating new products and proprietary delivery methods designed to enhance and complement consumer happiness, lifestyle and well-being," said Graham Simmonds, Bhang's interim CEO. "This proposed acquisition is an exciting step on that path, bringing new IP into the Bhang portfolio, and putting us in a position to leverage our global brand recognition with new revenue streams from both existing and new distribution platforms."
Late last year, Simmonds highlighted his new vision for the company, led by distribution and direct-to-consumer opportunities at the retail level within the minor cannabinoid market and the functional mushroom market.
The patents and IP that are available to 1352135 B.C. through certain exclusive licensing agreements include mucosal strips and biphasic edibles, which are new, innovative delivery methods and formulations for THC, minor cannabinoids, and psychedelic-infused edible products.
Pursuant to the letter of intent, Bhang would acquire all of the issued and outstanding common shares of 1352135 B.C. on or before March 10. In consideration for the acquisition, Bhang would issue to 1352135 B.C.’s vendors C$1 million in subordinate voting shares of Bhang at a price of C$0.05 per SVS. The closing of the acquisition is subject to the approval of Bhang's board of directors and pending the results of any due diligence and approvals required by any applicable regulatory body.