The company is offering more than 2.5 million shares in total at a price of C$0.51 per share
Canntab Therapeutics Limited () (OTCQB:CTABF) has reached a pair of binding agreements to buy $1.3 million worth of cannabis processing equipment and leasehold improvements for its Markham, Ontario facility.
The first deal will see the company pay C$1 million by issuing nearly 2 million shares of stock at a price of C$0.51 per share. The seller of the equipment is CMAX Technologies Inc, a related party of which Canntab CFO Richard Goldstein is the sole director and officer.
A deposit of 200,000 shares will be paid to CMAX within two weeks of the purchase agreement being executed.
READ: Canntab Therapeutics announces the appointment of Larry Latowsky as its CEO with immediate effect
Additionally, the company has agreed to purchase $300,000 in cannabis processing equipment from Pharmagenerics Solutions Inc, which it will pay for by issuing 588,235 shares at the same C$0.51 price.
Canntab is focused on the manufacturing and distribution of a suite of hard pill cannabinoid formulations in multiple doses and timed-release combinations. It holds a Cannabis Standard Processing & Sales for Medical Purposes Licence, a Cannabis Research Licence, and an Industrial Hemp Licence from Health Canada.
The company is also in the process of establishing a CBD manufacturing and distribution business in the US, through its wholly owned American subsidiary.
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