LiveWell (LVWL.V) to buy health product company Acenzia


LiveWell (LVWL.V) keeps rocketing higher.

LiveWell announced Dec. 19 they will acquire Acenzia, a company out of Tecumseh, Ont. Acenzia manufactures natural health products and supplements.

It’s another big move for LiveWell who has soared recently after deals with both Tilray (TLRY.Q) and Vitality.

Recent LiveWell moves

LiveWell (LVWL.V) and Vitality join forces just in time to sign Tilray (TLRY.Q) as a client
LiveWell (LVWL.V) pulls trigger on massive CBD merger

The deal with Acenzia, a definitive agreement signed Dec. 14 and first announced Oct. 5, will see LiveWell acquire 100 per cent of Acenzia’s common shares for $20 million.

“Leveraging strategic partnerships are key to scaling quickly and capitalizing on the immense and immediate market opportunities,” said David Rendimonti, Livewell’s president and CEO.

“The acquisition of Acenzia represents an opportunity for proprietary brand insight and product innovation. Their advanced therapeutics and easy-to-access diagnostics fall into a category of their own,” he wrote in a press release.

The is just another feather in LiveWell’s cap of transformation. The company is in the midst of reshaping themselves into a global cannabidiol (CBD) life sciences company. LiveWell thinks Acenzia is a perfect fit for them as the Tecumseh-based firm blends both science and advanced manufacturing techniques to make its natural health products and supplements.

Acenzia is an innovator in rapid product development and therapeutics specific to particular medical conditions. These capabilities will further Livewell’s health-related research in CBD and other cannabinoids and fast track the company’s CBD product development.

Grant Bourdeau, one of the two co-founders of Acenzia, along with Indrajit Sinha, thinks the merger offers a lot of potential for health-care innovation. “We are excited to contribute our technology, insight, and passion alongside (LiveWell’s) tremendously capable team,” Bourdeau said. Both Bourdeau and Sinha will join LiveWell.

Deal Summary

The make-up of the $20-million purchase consideration is mostly the same as was announced Oct. 5. The on difference now is shareholders have accepted promissory notes for the $2-million cash portion of the total purchase consideration.

The promissory notes bear a 10 per cent annual interest and mature on June 30, 2019.
As part of this acquisition, LiveWell will issue 21,428,571 common shares at 84 cents each to the shareholders of Acenzia at closing, which is expected to take place in the next few weeks.

Further, a loan provider of $750,000 to Acenzia Inc. agreed to convert 50 per cent or $375,000 to common shares of Livewell at 84 cents each, for a total of 446,428 common shares.

Full Disclosure: Livewell is an Equity Guru marketing client.

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