CBD firm Panacea Life Sciences, Inc. goes public via a reverse merger with Exactus, Inc. (OTCQB:EXDI), a provider of hemp-derived elements.
The Florida-based Exactus agreed to amass Panacea by issuing 1 million shares of its Collection C convertible most popular inventory, 1,000 shares of Collection C-1 convertible most popular inventory, 1,000 shares of Collection D convertible most popular inventory and 473,639,756 shares of widespread inventory.
As soon as the merger closes, Exactus will change its title to Panacea Life Sciences Holdings, Inc. As well as, a 1:28 reverse inventory cut up, licensed by the corporate, is pending regulatory approval.
Beneath the phrases of the settlement, twenty second Century Group, Inc (NYSE:XXII), a plant biotechnology firm centered on tobacco and hashish plant analysis that had invested $14 million in Panacea in 2019, obtained an 11.6% stake in Exactus by exchanging its Panacea most popular inventory.
Paradox Capital Companions, LLC agreed to function an advisor for the transaction.
The corporate additionally mentioned that Larry Wert, government chairman and media government of Exactus, will stay on the board of administrators however resign as chairman. Following the closing, Andrew Johnson agreed to help with investor relationships on the newly mixed firm after resigning as an officer of Exactus.
Why It Issues
Exactus, based mostly in Delray Seashore, has been specializing in “restructuring and correctly positioning the corporate to execute a strategic acquisition” over the latest interval, Wert defined. “We’re happy to supply our loyal shareholders this chance to proceed within the CBD area.”
Panacea Life Sciences manufactures hint THC, hemp-derived CBD merchandise for customers and pets, together with mushy gels, gummies, tinctures, sublingual tablets, cosmetics and different topicals.
Based by Leslie Buttorff in 2017, the women-owned firm operates a Golden, Colorado-based 51,000 sq. foot cGMP licensed facility in addition to PANA Botanical Farms in western Colorado.
“Our concentrate on high quality and traceability are the hallmarks of Panacea’s seed-to-sale technique,” Buttorff mentioned Thursday. “From our state-of-the-art CO2 extraction, chromatography gear, and product manufacturing traces, we will produce as a lot product as we have to meet our gross sales objectives for the foreseeable future.”