An Ottawa-based hemp company is ramping up its CBD extraction operations and opting for a fresh brand after shareholders gave the thumbs up to a reverse takeover.
LiveWell Canada, which develops products from the non-psychoactive component of hemp and cannabis, last week received 97-per-cent shareholder approval on its merger with Vitality CBD Natural Health Products Inc. and Mercal Capital Corp. The reverse takeover transaction will see Vitality shareholders receive a majority stake in the newly combined entity, which will retain its Ottawa headquarters. The deal remains subject to approval from the Canadian Securities Exchange.
Shareholders also approved a consolidation of LiveWell’s shares on a 15-to-1 basis.
The merged company will also adopt the brand Eureka 93, named after its existing CBD extraction facility in Eureka, Mont., off U.S. Route 93. That site currently produces 50 kilograms per day of hemp plant extract, but is slated to double that capacity by the third quarter of the year. Another facility in Las Cruces, N.M. is being retrofitted for CBD extraction and is expected to yield 1,000 kilograms per day when complete by the end of 2019.
Eureka 93 said in a release that the merger will create one of the largest hemp companies in North America. The firm’s operations stretch from cultivation to product development and distribution, and its early-stage deals include a supply agreement with British Columbia-based cannabis company Tilray.
“The merger uniquely positions us to capitalize on the multibillion-dollar market for health, wellness and beauty products made from hemp CBD, other cannabinoids and natural products,” said David Rendimonti, CEO of the amalgamated company, in a statement.