Lifeist Wellness today announced it has entered into a definitive agreement with 1463663 B.C., a newly-incorporated affiliate of Tierra Corp., to divest and sell all of the shares of the CannMart for CAD $5 million (approximately $3.7 million).
"The decision to undertake this transaction is a pivotal step in our broader strategy to fortify the financial position of both Lifeist and CannMart by improving cash flow, streamlining operational costs, and strategically shifting the focus of both entities beyond the constraints of the current cannabis regulatory framework,” said Meni Morim, CEO of Lifeist. “The shareholders from both companies benefit from the laser like focus of each management team on their respective lines of business. Lifeist will focus on continuing the growth of its nutraceutical business Mikra and Aussie Vapes, while CannMart will benefit from operating away from the onerous demands imposed by the multilayered regulatory regime that governs Canadian public cannabis companies. Lifeist will also be positioned to greatly enhance available free cash without dilution or debt, allowing it to not only sustain but aggressively grow existing ventures while actively exploring additional strategic opportunities.”
Tierra Corp. is a private Canadian corporation led by its principal shareholder, Colin Samples.
The transaction allows Lifeist to complete the strategic pivot launched in 2021 with the formation of its wholly owned subsidiary Mikra Cellular Sciences. The company said it can now focus its attention more fully on opportunities in the large and growing nutraceutical space. In Q4 2023 Mikra launched two new natural science-based products and is well positioned to pursue opportunities in the wellness market, taking advantage of the substantially higher margins, lower effective taxation rate, much lower regulatory compliance overhead costs, and far greater freedom to creatively market and advertise innovative products therein as compared to the regulated cannabis space.
In addition, Lifeist retains upside exposure to new developments in the regulated cannabis space through purchase warrants in Tierra Corp., and is free to reenter the industry domestically or internationally if and when management so sees fit.