Alchemist Inc inks agreement to purchase Oddysee cannabis software platform

Alchemist Inc (CSE:AMS) said Wednesday that it has inked a deal to purchase cannabis software platform, Oddysee from Green Rush Consulting LLC. 

Based in Oakland, Oddysee is a software-as-a-service (SaaS) platform focused on the automation of city and state cannabis license applications. It also assists with investor qualification and vetting for its clients’ cannabis business ventures. Alchemist is a global provider of technology solutions to the cannabis sector.

In exchange for a 100% interest in Oddysee, Alchemist has agreed to issue Green Rush 20 million common shares at a deemed price of $0.05 per share (subject to adjustment in the event of a consolidation or split of the company’s shares) and pay Green Rush US$3,750,000 over a four-month period commencing on the closing date. 

The company said the shares will be subject to a statutory hold period, as well as an escrow agreement where 10% of shares will be released on closing and an additional 15% released every six months after. 

READ: Alchemist closes final tranche of private placement for gross proceeds of C$905,900

Additionally, Zeta Ceti, the principal of Green Rush, join the board of directors of Alchemist and Green Rush has agreed to provide ongoing software development services to the company, to ensure Oddysee’s smooth transition. 

“We are excited to have formalized our agreement with Green Rush and to have taken this significant step towards re-defining our company as a technology solutions provider for the burgeoning cannabis sector,” said Alchemist CEO Paul Mann in a statement. “We also look forward to the continued engagement of Green Rush as well as Zeta’s future involvement on our board of directors following the Acquisition.”

The acquisition is subject to Canadian Securities Exchange and shareholder approval. Alchemist shres have been halted and are expected to resume after the CSE approves certain documentation related to the deal. 

Share consolidation

Alchemist also announced that its board of directors plans to consolidate the company’s issued share capital on a ratio of one new post-consolidated common shares for every four old pre-consolidated common shares.

According to the firm, it currently has 58.9 million issued and outstanding common shares and, on completion of the consolidation, will have approximately 14.7 million issued and outstanding common shares.

Contact Katie Lewis at [email protected]

Follow her on Twitter @kelewis

Story by ProactiveInvestors