Canadian producer Atlas buying more Israeli cannabis pharmacies

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Canadian marijuana producer Atlas Global Brands entered into binding letters of intent to buy majority positions in two cannabis pharmacies in Israel.

The Chatham, Ontario-based cannabis firm would control seven pharmacies when the proposed acquisitions close.

“We believe that these acquisitions will not only benefit our patients and shareholders but will continue to solidify our international cannabis footprint,” Atlas CEO Bernie Yeung said in a Tuesday news release.

One of the pharmacies Atlas is seeking to acquire is located in Tel Aviv and the other in Jerusalem.

Under the terms of the deal, Atlas said it would indirectly acquire a 70% interest in “pharmacy 1” for 1.3 million new Israeli shekels (484,000 Canadian dollars), payable at closing.

Atlas said it plans to indirectly acquire a 51% interest in “pharmacy 2” for 1.132 million Atlas shares, which are valued at a deemed price of CA$1 per share, also payable at closing.

Atlas said it intends to enter into a definitive agreement by March 31.

The proposed deals are expected to close in the last quarter of the company’s fiscal 2023.

Atlas Global shares trade as ATL on the Canadian Securities Exchange.

Last week, Atlas entered an “exclusive international licensing agreement” with hip-hop artist Calvin Broadus Jr., aka Snoop Dogg.