Phivida Holdings (CSE: VIDA) (OTCQX: PHVAF) agreed to acquire Wikala.com, a Canadian technology firm which operates an online cannabis platform.
The all-share deal is valued at approximately C$22.5 million and is expected to close on or before May 31.
Once complete, Wikala.com will become a subsidiary of Phivida.
Acquisition
Under the agreement, Phivida will acquire the online platform for cannabis information, generating over 400,000 average monthly users. The company intends to create a premier consumer packaged goods company with direct-to-consumer access via Wikala.com.
Phivida says that the addition of Wikala’s e-commerce platform will accelerate its Oki and Vida+ branded products into the U.S. market.
“Combined with the recently launched feeloki.com website, the acquisition creates a consumer ecosystem that will enhance visibility of Phivida brands and create brand loyalty,” according to the company.
“Wikala does an incredible job of feeding the world’s never-ending cannabis and CBD curiosity and its high levels of traffic and user engagement will make its e-commerce site an attractive showcase for leading cannabis and hemp brands, including our products. We see this combination as an opportunity to create a trusted consumer ecosystem that will inform and educate – and ultimately lead the consumer to purchase,” Phivida President and CEO Jim Bailey states.
Cannabis E-Commerce Site
Wikala is launching an e-commerce site featuring cannabis products and accessories, including Phivida’s Oki beverages and hemp oil supplements, and Vida+ hemp CBD oil extracts and capsules.
Wikala’s online education and information platform, Greencamp.com, will drive traffic to the site. Greencamp.com provides an online content platform focused on the cannabis sector. The site’s offering of news, reviews, health tips, and how-to guides, all based around CBD and cannabis, is valued by users and encourages ongoing engagement.
Since its launch in June 2017, Greencamp has increased traffic to the site to more than 400,000 average monthly users and continues to grow.
Under the terms of the share exchange agreement, Phivida will acquire all of the issued and outstanding common shares of Wikala, in return for common shares of Phivida.
Based on a volume-weighted average trading price of C$0.8547 in respect of the Phivida shares for the 20 trading days ended April 26, the consideration payable represents a total transaction value of approximately C$22.5 million and is expected to result in the issuance of approximately 26,325,004 Phivida shares.
Closing of the Transaction is subject to certain customary conditions, including completion of confirmatory due diligence investigations by Phivida and, if applicable, acceptance by the Canadian Securities Exchange.
“Joining forces with Phivida will accelerate our goal of addressing user needs by building a superior direct-to-consumer online platform built on quality, information and trust,” David Moon, the CEO of Wikala.com, states. “Phivida and Wikala have a shared vision of focusing on the consumer and providing the best user experience in the industry, and we look forward to partnering with a growing portfolio of world-class brands.”