Chemsis International Acquires Majority Stake in GSRX Industries to Expand Pharmaceutical-Grade CBD Product Portfolio

On August 5, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Canadian cannabis cultivation company Chemsis International announced the acquisition of a 66.29% equity stake in cannabis retail company GSRX Industries.

Pursuant to the terms of the agreement, Chemsis International will acquire a total of 42,634,124 shares of common stock and 1,000 shares of preferred stock of GSRX Industries. Combined with the common stock of GSRX Industries already held by Chemsis International, Chemsis International will hold a total of 54,301,122 shares of common stock and 1,000 shares of preferred stock upon completion of the acquisition. The preferred stock represents 51% of all issued and outstanding shares of GSRX Industries. Consequently, upon completion of the acquisition, Chemsis International will hold voting rights representing 66.29% of the total issued and outstanding shares. INFORFinancial served as the financial advisor for this acquisition.

Headquartered in Puerto Rico, Spain, GSRX Industries is a cannabis product retail company and a leader in the cannabis retail industry. The Company primarily engages in cannabis acquisition through its subsidiaries, and develops and operates cannabis retail dispensaries as well as non-THC (tetrahydrocannabinol) and CBD (cannabidiol) retail stores.

GSRX Industries is currently expanding its business scope to include the cultivation, extraction, distribution, light manufacturing, and transportation of cannabis and cannabinoid products. GSRX Industries operates five cannabis dispensaries in Puerto Rico under the name Green Spirit RX and one cannabis dispensary in California, United States, under the name Green Room. Additionally, it has added five pre-qualified cannabis dispensaries in Puerto Rico, all of which are currently under development and construction. GSRX Industries also owns and operates the e-commerce website GetPureAndNatural.com, which offers a variety of pharmaceutical-grade CBD products.

Chemsis International, established in 2017 and headquartered in British Columbia, Canada, is a cannabis cultivation company. The company leads the cannabis industry through innovative, fully compliant products and services. Every product under the Chemsis International brand is meticulously crafted using state-of-the-art extraction and processing technologies to meet the highest quality standards. Chemsis International uses only 100% organically grown cannabis and is committed to achieving rapid growth within the emerging, fully licensed, and fully compliant cannabis industry.

Chemsis International operates manufacturing facilities in Puerto Rico and California, and is currently constructing a Good Manufacturing Practice (GMP)-certified plant in Colombia. In Puerto Rico, the company maintains a 100,000-square-foot cannabis cultivation site and a 35,000-square-foot manufacturing facility. Chemsis International aims to secure additional cannabis production licenses in highly competitive U.S. states, expand its market share, and solidify its first-mover advantage.

“GSRX has built a strong portfolio in retail and manufacturing, with all of its business segments experiencing rapid growth,” said Edgar Montero, CEO of Chemsis. “We are very pleased with this acquisition and believe it will significantly enhance our operational efficiency while complementing the strengths of each company’s respective business lines.”

(Compiled by Cheng Tao)