Health sciences group PreveCeutical Medical Inc (CNSX:PREV) is poised to widen its reach and expand its offering as it's set to acquire The Penta 5 group - a health and wellness and consumer packaging group.
The latter's assets include over 120 market-ready products and a 150,000 sq ft state-of-the-art packaging facility.
"The transaction will significantly benefit Preveceutical and its shareholders. The Penta 5 group, led by R. Charles Murray, has recorded over 20 years of success in the wellness and packaging industries," said Stephen Van Deventer, chairman, CEO and president of Preveceutical.
"Mr. Murray's extensive industry experience and large distribution network will open doors to create many cannabis-based health and wellness products and expand into new markets, including animal health care," he added.
The Penta 5 group currently has a wide range of products, and it is close to commercializing more, including cannabis-based medicinal oils, hydrogen-infused water that boosts metabolism and improves stamina, and a range of non-toxic, mosquito control products that could aid in stopping the spread of diseases, including malaria, yellow fever and dengue fever.
Its medical packaging products include VialPaQ pouches, which are trackable, childproof pouches that can be used to hold CBD (cannabidiol) oils in controlled doses.
Its so -called humanitarian products include HotPaQ pouches for heating foods and liquids without electricity, and MosquitoPaQ patented mosquito repellants for use in combating the threat of mosquitoborne diseases.
In addition, Penta 5 group is planning to launch 30 new patent-pending CBD products ranging from CBD infused skin care creams, flavoured CBD alcohols and environmentally friendly CBD sunscreen.
Under the terms of the, LOI, the company would acquire the Penta 5 group and all of its assets and liabilities (including around US$3 million in long-term debt) by way of share exchange.
The shares would be exchanged for 90 million Preveceutical shares and 45 million non-transferable performance warrants, each of which performance warrants would be exercisable to acquire one Preveceutical share for $0.135 per share for 36 months from closing.
At closing, Charles Murray and Robert Hall will be appointed as the president and chief operating officer of Preveceutical, respectively.
Preveceutical aims to be a leader in preventive health sciences.