Lifeist Wellness today announced the sale of Australian Vaporizers (Aussie Vapes), its wholly owned Australian subsidiary, to Flora Growth, a U.S.-based consumer-packaged goods and pharmaceutical distributor serving all 50 states and 28 countries. The sale was completed through a share purchase agreement entered into between Lifeist and Flora Growth, pursuant to which Lifeist has sold the issued and outstanding shares of Aussie Vapes to Flora, for total consideration valued at approximately C$900,000 (approximately $657,000).
“We are pleased to announce the sale of Aussie Vapes to an organization whose core business is an excellent fit for Aussie Vapes and that is well positioned to allocate specialized management resources to that market, catalyzing faster growth,” said Meni Morim, CEO of Lifeist Wellness. “Although our original sale agreement with Flora was terminated, we have remained in contact and were able to ultimately arrive at mutually agreeable terms for the sale of Aussie Vapes. We have continued to develop the business and adapt to the rapidly changing regulatory environment in Australia, but it remained a non-core asset for Lifeist. The sale allows Lifeist to exit the Australian devices market and focus our attention on more aggressively developing core assets in North America, while at the same time strengthening our cash position.”
The terms of the sale of Aussie Vapes represent a substantial improvement over the previous agreement announced September 18, 2023. With the present sale, Lifeist has delivered C$400,000 of inventory (vs. C$1.1 million of inventory in the previous agreement) and C$50,000 cash (vs. C$450,000 cash in the previous agreement).
