Atlas Global Brands Inc. (CSE: ATL), a prominent cannabis company, announced that it signed a definitive agreement on February 24, 2023, to acquire GreenSeal Cannabis Company, Ltd. and GreenSeal Nursery, Ltd., an Ontario-based licensed cannabis producer. This acquisition is expected to enhance Atlas Global's international strategy by adding GreenSeal's GACP and CUMCS certified facility, increasing the company's annual production capacity by approximately 3,500 kg, and incorporating a nursery program with hundreds of exotic genetics.

The acquisition is part of Atlas Global's broader strategy to expand its footprint in international medical cannabis markets. CEO Bernie Yeung emphasized the importance of this acquisition in solidifying their plan to offer a diverse range of premium cannabis products globally. With the integration of GreenSeal's facility, Atlas Global aims to boost its production capabilities and strengthen its position in the global market.

Under the Share Purchase Agreement, Atlas Global will issue up to 11,500,000 common shares to acquire 100% ownership of GreenSeal, with the shares priced based on the 20-day volume-weighted average price (VWAP) of Atlas Global's shares on the CSE at closing. GreenSeal will retain approximately CAD $5.5 million in bank debt and CAD $0.6 million in long-term related party loans, which will be repaid from the business's free cash flows.

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in Q1 2023. Legal advisors for the deal were not disclosed.