Relevium Technologies has bought a Canadian wholesale and distribution cannabis company as part of a $2m deal.
Relevium, through its Ontario-based subsidiary Biocannabix, has acquired 100% of Weedsense – a business that is building a wholesale and distribution facility just outside of downtown Montreal.
Weedsense will be purchasing wholesale or bulk products from other Health Canada-licensed producers or processors and will be distributing cannabis and cannabis-derived products directly to medical patients.
Excess capacity at the facility may be rented out once fully licensed, and Weedsense can and may act as a secured storage facility or third-party logistics partner for other market participants.
Dave Shepard, CEO and Co-Founder of Weedsense, said: “We began the transactional process with Relevium in May for a direct investment and, through the last few months, both parties concluded that a full acquisition was the most beneficial avenue for generating shareholder value as well as executing on the buildup of the Weedsense facility.”
Fellow co-founder and COO Sasha Asgary, COO added: “The intended purpose of Weedsense is to solve some of the major supply chain issues that are prevalent in the cannabis market today which include getting products to the medical and recreational markets.
“We think that, in collaboration with Relevium, Weedsense will be in a position to offer a superior user experience to all potential customer and client verticals be it on a D2C or B2B basis or as a service provider within the industry.”
Canada legalised cannabis in October 2018 and the industry has soared over the last year.
Aurelio Useche, CEO of Releviu, said: “The acquisition of Weedsense is an important milestone for Relevium and Biocannabix as the acquisition of this late stage applicant will help us accelerate our path in distributing cannabis products within our home market in Canada.
“This will be the beginning of generating significant Canadian revenues under Biocannabix. We are thrilled to have executed this agreement and look forward to working with Dave and Sasha on building out the facility and building up the business.”