Lifeist Wellness Inc. (OTCMKTS: NXTTF) has acquired Canadian cannabis brand 1000501971 Ontario Inc., commonly known as Zest, in an all-stock transaction valued at $3.4 million, the company announced Thursday.
“Zest’s addition to CannMart brings an elevated level of growth and innovation through its exceptional cannabis products,” Daniel Stern, CEO of CannMart, said. Stern expects the deal to help solidify CannMart’s position one of the country’s market leaders by meaningfully expanding its product range, which now includes hydrocarbon-focused vapes, infused pre-rolls, and flower.
Lifeist’s CEO, Meni Morim, welcomed the Zest team, expressing that the company’s primary objective is to improve profitability by expanding its product portfolio through strategic acquisitions and internal development.
“With the addition of high-margin Zest products, alongside Roilty and other high-quality brands, CannMart continues its growth trajectory to provide convenience and satisfaction to both consumers and provincial buyers in the marketplace,” Morim said.
The company said that the deal will enhance the competitive position of both Lifeist and CannMart by adding Zest’s hydrocarbon vape, infused pre-rolls, and flower SKUs to the current product assortment of cannabis concentrates offered by Roilty, Lifeist’s in-house brand.
The deal was finalized according to the terms of an amended share purchase agreement, resulting in the issuance of around 68.2 million common shares of Lifeist, valued at $3.4 million.