Earlier this week, Thoughtful Brands (TBI.C) has entered into a binding letter of intent with European medical cannabis company, Franchise Cannabis (FCC), to facilitate a reverse takeover of Thoughtful Brands, according to a press release.
The transaction is anticipated to be highly beneficial to both companies, as they look forward to blending their respectively expertise in developing their business in the United States and Europe.
“Becoming a public company will give us increased visibility and access to capital, which in turn will allow us to execute on our long-term strategy of continuing to develop our European medical cannabis and genetics businesses. Since inception, we have built a portfolio of competencies with our genetics, cultivation [and] distribution, and now we feel poised to firmly establish our global footprint in the sector. We also intend to act on opportunities to scale both our pharmaceutical distribution capabilities and cannabis businesses as well as potentially enter the U.S. adult market. Our combination with Thoughtful Brands accelerates our vision to have a presence within the United States while giving us the opportunity to leverage their e-commerce expertise and consumer products portfolio within the growing European market,” said Clifford Starke, chief executive officer of FCC.
Thoughtful Brands was halted today on the news at $0.06, putting a temporary end to a steady decline in price that began in August, when they trading at $0.285.
Franchise has the distinction of being the first company to get an import and distribution license in Germany for medical cannabis. Their pharmaceutical distribution wing is one of the largest exports of prescription pharmaceutical products in the EU, with a distribution range over 18 countries. Their proprietary genetics has also won 19 cannabis cups, and enjoys cultivation and supply agreements spread out over three continents.