File photo. Photo: Kimzy Nanney
Two medicinal cannabis companies are looking to merge as the industry gears up for growth.
Cannasouth and Eqalis expected the proposed 50-50 merger would add considerable value to their operations by combining intellectual property, technology, research and development, innovation, manufacturing, sales and prescribing capabilities.
Cannasouth would buy all of Eqalis's shares, valued at $48.4 million, by way of an equal value of shares, issued at 33 cents per share.
The merged companies would raise an additional $9m in working capital.
Cannasouth chief executive Mark Lucas said the merger would increase the companies' opportunities for growth.