As the Trudeau government prepares to introduce legislation to legalize marijuana, an Ottawa-based company plans to buy a stake in a Vancouver-based lab company.
CannaRoyalty Corp. has announced that it has signed a letter of intent to pay $4 million in cash and common shares for 20 percent of Anandia Laboratories Inc.
Anandia is licensed by the federal government to evaluate products for clients licensed under the Access to Cannabis for Medical Purposes Regulations.
This dealer’s licence also permits Anandia to ‘cultivate cannabis for breeding and strain improvement’, according to a news release issued by both companies.
“We have elected to partner with CannaRoyalty given their expertise in extraction, post-processing and the development of proprietary formulations,’ Anandia CEO Jonathan Page said in the release. ‘The recent Task Force report described analytical testing as the ‘cornerstone’ for ensuring safe and effective products in the future cannabis market. Building on our analytical chemistry expertise, our objective is to leverage our Dealers License to build a national, best-in-class cannabis extraction and processing facility.’
CannaRoyalty Corp. documents mention that Lustig is a resident of West Vancouver who worked for various securities firms before founding Cannabis Royalties & Holdings Corp. as a private company in early 2015. In December, the company and a numbered company engineered a reverse takeover of publicly traded Bonanza Blue Corp., becoming CannaRoyalty Corp.
‘Our partnership with Anandia Labs exemplifies our approach of acquiring interests in high-value, strategic assets in the North American cannabis sector,’ Lustig said in the news release. ‘As the only independent Canadian testing facility specializing exclusively in cannabis, Anandia Labs is clearly well positioned given how crucial independent testing of cannabis products is to the future of the cannabis sector in Canada. In addition, the value that we expect to help create through Anandia Labs’ Dealers License for the extraction of derivatives—together with Anandia’s impressive patent portfolio of genetics—gives CannaRoyalty shareholders exciting exposure to rapid and sustainable growth areas in Canada’s dynamic cannabis sector.’
