Vencanna Ventures Completes Acquisition of Cannavative Group Amidst U.S. Cannabis Reform
Calgary, Alberta -- May 1, 2024 -- NewsGenie -- Vencanna Ventures Inc. has finalized its acquisition of The Cannavative Group, positioning itself to capitalize on opportunities within the evolving U.S. cannabis market. The acquisition coincides with significant developments in U.S. cannabis regulation, including the DEA's decision to reschedule cannabis as a Schedule III Controlled Substance, pending White House approval.
David McGorman, Vencanna's CEO, expressed enthusiasm about the acquisition, highlighting Cannavative's strong brand presence in Nevada and the potential for national exposure through the state's tourism industry. "We are tremendously excited to have closed this important transaction on the very day of the DEA’s decision to reschedule cannabis as a Schedule III Controlled Substance," McGorman stated.
Under the terms of the agreement, Vencanna acquired all outstanding membership units of Cannavative through an all-share exchange. Vencanna issued 56.8 million common shares, along with warrants exercisable for additional shares. An additional 96.6 million earn-out units may be issued upon achievement of specific financial milestones.
Vencanna also announced the conversion of a convertible debenture into 41.4 million common shares and 20.7 million share purchase warrants, making the company debt-free with approximately C$4.0 million in cash on hand.
The leadership team will integrate professionals from both Vencanna and Cannavative. Key appointments include Scott Wrye as a Vencanna director and Jason Crum as Chief Revenue Officer. Jon Sharun will serve as Executive Chairman & Interim CFO, and David McGorman will continue as CEO & Director. Matthew Christopherson and Smoke Wallin have stepped down from the board.
Established in 2016, Cannavative is known for cultivation and processing, holding licenses and shelf space in over 80% of Nevada retail outlets. Its facility spans 40,000 square feet on 8.5 acres in Reno, Nevada.
Vencanna aims to be a capital provider for early-stage cannabis initiatives, focusing on strategic jurisdictions with unique characteristics and barriers to entry.