VIVO Cannabis (TSX-V: VIVO) (OTCQX: VVCIF) has announced that it has made a C$1.25 million investment in Friendly Stranger Holdings, Canada’s most iconic cannabis culture shop.
The investment will facilitate Friendly Stranger’s aggressive cannabis retail expansion plans, with a goal of bringing multiple retail stores to the Canadian market, VIVO said in a statement.
“VIVO is focused on expanding capacity and increasing production capability to help meet the growing demand for cannabis among recreational users,” VIVO CEO Barry Fishman stated.
“Friendly Stranger has been an iconic brand in the Canadian cannabis sector for more than 25 years and we believe trusted retailers are integral to showcasing our premium family of brands, including Canna Farms, Fireside, and Lumina. We have actively sought strategic partnerships with retailers to establish strong relationships with existing and future leaders in the cannabis industry. We look forward to working with Friendly Stranger to advance their premium adult-use cannabis retail strategy in Ontario and throughout Canada,” Fishman added.
VIVO has agreed to acquire, through a subsidiary, 187,500 Class A common shares in the capital of Friendly Stranger at a price of C$4.00 per share for C$750,000, and an unsecured convertible debenture of C$500,000 for a total investment of C$1.25 million.
The debenture will bear interest at the rate of 6.0% per annum, have a maturity date of June 19, 2021, and be convertible, at the option of VIVO, into Class A common shares of Friendly Stranger at a conversion price of $5.00 per share, subject to adjustment and certain limitations as provided in the debenture certificate.
VIVO and Friendly Stranger have also entered into a preferred partnership agreement pursuant to which, among other things, the parties have agreed to collaborate on obtaining Friendly Stranger’s cannabis retail license, conducting in-store events, and leveraging co-branding opportunities.