Price tag revealed for sale of Shoppers Drug Mart cannabis assets

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Canadian cannabinoid product company Avicanna has revealed how much it is paying to buy a medical cannabis business from major Canadian pharmacy chain Shoppers Drug Mart: 2.6 million Canadian dollars ($1.9 million).

Avicanna will also pay Shoppers earnout payments based on net revenues for a two-year period, the company said in a news release.

The deal covers “specific assets of the business, including inventory and equipment,” said Avicanna.

Shoppers announced its intention to exit its medical cannabis distribution business and transfer it to Avicanna in late March.

At the time, Shoppers and Avicanna did not disclose the value of the deal.

The transaction is set to close at the end of July.

Avicanna is building a new online medical cannabis platform to serve patients transitioning from Shoppers.

The company’s shares trade as AVCN on the Toronto Stock Exchange.