Craft 1861 Global Inc., a wholly owned subsidiary of Craft 1861 Global Holdings Inc. (Cboe Canada/NEO: HUMN), has entered into a binding letter of intent to divest its plant-touching operations in New Mexico to RKA LLC.
RKA is at arm’s length to Craft.
Craft currently exercises capital and management control of Healthy Education Society, a not-for-profit that holds a vertically integrated license in New Mexico.
Under the terms of the deal, RKA will assume capital and management control of HES in exchange for the assumption of approximately $2.7 million of liabilities. Meanwhile, Craft will enter into a licensing agreement with RKA for the use of certain HES trademarks.
Craft will also be granted a right of first refusal to reacquire capital and management control of HES, which would be undertaken at a 25% premium price.