Vancouver, British Columbia – TheNewswire – June 17, 2021 – Gaia Grow Corp. (the “Company” or “Gaia”) (CNSX:GAIA.CN) (Frankfurt: GG0) has entered into a definitive share purchase agreement (the “Purchase Agreement”) with Regenco Technologies Inc. (“Regenco”), and each of the shareholders of Regenco. Regenco operates a licensed recreational cannabis retail store located in Squamish, British Columbia.
Pursuant to the terms of the Purchase Agreement, the Company intends to acquire all of the outstanding share capital of Regenco in consideration for 35,000,000 common shares (the “Consideration Shares”) of the Company to be issued to the existing shareholders of Regenco. In addition, the Company will be required to issue 3,500,000 common shares to an arms-length party in satisfaction of an obligation of Regenco to compensate a third-party who assisted with facilitating the acquisition.
The acquisition of Regenco is not expected to constitute a fundamental change for the Company, nor will it result in a change of control of the Company, within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange. Completion of the acquisition remains subject to delivery of customary closing materials and applicable filings with the Canadian Securities Exchange.