Vancouver, British Columbia, Canada-based Invictus MD has entered into a Letter of Intent for an option to acquire 49 percent of Zenalytic Laboratories for more than $224,600 in issuance of common shares of Invictus stock based on the price three days before closing the deal, the company announced in a press release. The cannabis testing lab is a wholly owned subsidiary of GreenTec Bio-Pharmaceuticals.
The Letter of Intent allows Invictus to exercise the option within 45 days after the lab obtains a Section 56 Class Exemption Dealer’s license from Health Canada. The license, already confirmed in writing by the Office of Controlled Substances, is required under the Narcotic Control Regulations in order for Zen Labs to become an authorized cannabis tester under the Access to Cannabis for Medical Purposes Regulations and the Marijuana Access Regulations. Zen Labs’ application was confirmed on July 27 and is expected to be issued within 180 of that date.
Dan Kriznic, Invictus CEO, said that the federal testing regulations put the laboratory sector in a position to emerge rapidly and that they will be able to serve both individual and corporate clients. Kriznic noted that the acquisition will be a complement to their Future Harvest Development program which is located about 5 miles from the site of the testing lab.
“This will open doors and opportunities to promote FHD’s fertilizers and also enables FHD’s existing clients to have a reputable analytical laboratory confirm that their final product will be low in heavy metals and urea-free,” he said in the release.
Invictus will pay Zen a $45,000 deposit in common stock shares at the deal’s close.
Get daily cannabis business news updates. Subscribe