Chemesis International Inc. has entered into an agreement to buy a majority of the shares of GSRX, which has five medicinal cannabis dispensaries in Puerto Rico, the companies announced.
The transaction calls for Chemesis to acquire more than 42.6 million common shares and 1,000 preferred shares of GSRX, in exchange for an some 18.9 million Chemesis common shares to be issued to the selling shareholders.
The shares will be combined with those Chemesis already own of GSRX, which will make it a majority shareholder. Completion of the acquisition is expected to occur prior to Aug. 31, 2019, the company announced.
GSRX operates medical cannabis clinics in Puerto Rico under the Green Spirit Rx brand with locations in Dorado, Carolina, Hato Rey, Fajardo and San Juan. Once the deal closes, Chemesis will also have presence in California, Tennessee, Arizona, Michigan and Texas.
Gross revenue projections for the combined operations is estimated at some $75 million for the 2020 calendar year.
GSRX has another five pre-qualified dispensaries planned for Puerto Rico, which are in “various stages of development and construction.
“GSRX has built an incredibly strong portfolio of retail and manufacturing assets and the company is realizing growth in all aspects of its operations,” stated Chemesis CEO Edgar Montero.
“The company is incredibly excited about this acquisition and believes it will be highly accretive in terms of the potential to realize efficiencies and complement the strengths of each company’s respective business lines,” he said.