Alchemist Mining Inc (CSE:AMS) announced Wednesday that it has signed a binding letter of intent to acquire a 15% stake in another cannabis company – Island Therapeutics.
The deal’s price is C$150,000, which will be paid in shares of Alchemist. The Vancouver company also wins the option of acquiring up to 49% of Island Therapeutics.
Founded in the Cowichan Valley of British Columbia’s Vancouver Island, Island Therapeutics sells hand-crafted transdermal patches, oil tinctures and CBD (cannabidiol)-infused healing remedies.
“Our partnership with Island Therapeutics represents the beginning of the next phase of our business roadmap,” said Alchemist CEO Paul Mann in a statement. “[We] are now beginning to on-board producers of high-quality craft cannabis products for supply to our US and Canadian distribution networks.”
Previously a junior miner, Alchemist aims to be a provider of technology to the cannabis sector via acquisitions and investments.
Alchemist shares held steady at just under C$0.06 in Canadian morning trade Wednesday.
Contact Ellen Kelleher at [email protected]