Cannasouth adds manufacturing capability with strategic acquisition

Leading New Zealand medicinal cannabis company, Cannasouth Limited (NZX: CBD), announced today it had entered into an agreement to acquire a 60 per cent shareholding in Hawkes Bay-based Midwest Pharmaceutics NZ Limited for a purchase price of $1.32 million.

Highlights

? Cannasouth expands with acquisition of an initial 60% stake in Midwest Pharmaceutics NZ Limited (Midwest).

? The acquisition will accelerate Cannasouth’s development of its medicinal cannabis business in New Zealand and will provide immediate revenues from the date of acquisition.

? The acquisition will add significantly to the suite of licences that can be utilised by the Cannasouth group.

? The acquisition complements the recent joint venture entered into with Mr Aaron Craig to form Cannasouth Cultivation Limited for the development and cultivation of medicinal cannabis in the Waikato region.

? The acquisition significantly progresses the Company’s key vertical integration strategy “from seed to sale”.

Please see the NZX Market Announcement for full details.