Heritage has issued Los Angeles-based Endocanna's principles with 2.7 million shares at C$0.49 per share in exchange for a 10% stake and has also spent C$2 million for an additional 20% holding.
The firm plans to introduce to Canada the Endocanna DNA kit, which tests users DNA to determine how it affects their experiences with cannabis.
READ: Heritage Cannabis to supply Cronos with vaporizer devices for Canadian adult-use, medical markets
“We look forward to introducing the Endocanna DNA kit to Canada, and working with the entire team at Endocanna to bring some of our medical formulations to the marketplace,” Heritage CEO Clint Sharples said. “The information that the DNA kit provides, gives people the opportunity to more effectively use cannabis for their medicinal requirements.”
As part of the deal, Endocanna has appointed Heritage Chief Financial Officer Erin Prohaska to its board of directors and Chief Science Officer Chris Spooner to its advisory board.
Heritage saw its shares slip nearly 3% on Monday to C$0.50 on the CSE.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel