Lifeist announced that CannMart, its wholly owned Ontario subsidiary, has entered into a services agreement and a share purchase agreement with Simply Solventless.
Simply will provide operational support services pending its acquisition of CannMart, which operates a B2B wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards.
The arrangement will provide Lifeist with positive cash flow from the CannMart asset while Simply supports CannMart in its day-to-day operations.
“We have been deeply impressed by Simply Solventless’ ability to operate profitably in an otherwise extremely challenging commercial landscape, leveraging sophisticated cost control and sales management systems across their business units,” said Meni Morim, CEO of Lifeist. “This agreement secures that same industry leading expertise to support CannMart, while achieving further economies of scale and improved reach that will make the resulting enterprise greater than the sum of its parts. We are pleased to join forces with one of the only Canadian public cannabis companies that has proven capable of operating profitably. These agreements represent the best path forward for Lifeist shareholders, with new operational expertise for CannMart and exposure to Simply Solventless through units at a favorable valuation, providing upside as the combined entity continues to grow.”
