Codebase Ventures Inc (CSE:CODE) (OTCMKTS:BKLLF) has issued an investment update on Monday to its shareholders on subsidiary Code Cannabis Investments' interest in UK-based cannabis investment company World High Life Plc (NEX:LIFE).
World High Life announced on Friday the completion of its acquisition of Love Hemp Ltd, the top supplier of CBD and hemp products in the UK, for consideration of between C$15.2 million and $16.9 million (£9 million and £10 million).
The purchase, the company said, provides Love Hemp with the tools to expand its footprint in the UK and Europe and thus helps World High Life cement its role as a leading medical cannabis and CBD company in the region.
READ: Codebase Ventures' investee World High Life plans £9M acquisition of UK cannabis supplier Love Hemp
"On behalf of the Codebase board and leadership, we congratulate World High Life and Love Hemp on the completion of this acquisition," Codebase Director Brian Keane said in a statement. "This is a tremendous combination that gives Codebase shareholders excellent exposure to the thriving CBD markets in the UK and Europe.”
Love Hemp, for its part, distributes to 1,200 UK supermarkets and health food stores, selling more than 40 different product lines.
“Love Hemp is a brand that has experienced tremendous success and is primed to lead the industry's growth throughout the UK and into Europe,” added Keane. “In addition, the terms of the investment are highly favourable to Codebase shareholders, providing excellent liquidity."
Codebase’s investment in World High Life consists of C$412,500 (£250,000) in convertible debentures, which pay 10% interest annually and are convertible into LIFE shares at a price of £0.10 per share; 3 million units for C$412,500 (£250,000), where each unit consists of one share at a price of £0.10 and one half share purchase warrant exercisable at £0.20; and an 8% promissory note worth another $412,500 (£250,000).
The company said it had made the first tranche investment of approximately C$1,317,000 (£800,000).
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