BOD Science's Strategic Acquisition of Biortica Agrimed Ltd
BOD (BOD) Share Update November 2024 Tuesday 5th
BOD Science Announces Acquisition of Biortica Agrimed Ltd
BOD Science Limited has announced a significant move to acquire Biortica Agrimed Ltd, marking a strategic expansion in the cannabis-focused drug development sector.
Instant Summary:
- BOD Science to acquire all shares of Biortica Agrimed Ltd.
- Biortica shareholders to receive BOD Science shares as consideration.
- Acquisition subject to shareholder and regulatory approvals.
- BOD Science to re-comply with ASX Listing Rules Chapters 1 and 2.
- Expected completion of acquisition by early 2025.
Acquisition Details
BOD Science Limited has entered into a binding share purchase agreement to acquire all issued shares of Biortica Agrimed Ltd. The acquisition will be executed through the issuance of ordinary shares in BOD Science to Biortica's shareholders. This strategic move is aimed at consolidating BOD Science's position in the cannabis drug development and product innovation market.
The agreement also includes provisions for the buy-back of Biortica's preference shares and the conversion of convertible notes into BOD Science shares. This transaction is expected to result in Biortica becoming a wholly-owned subsidiary of BOD Science, subject to necessary approvals.
Regulatory Compliance
Given the significant change in the nature and scale of BOD Science's activities, the company will need to re-comply with Chapters 1 and 2 of the ASX Listing Rules. This includes obtaining shareholder approval and satisfying other regulatory requirements. The company plans to address these at an Annual General Meeting scheduled for January 2025.
Biortica's Business Model
Biortica is a tech-enabled horticultural business specializing in medicinal cannabis genetics, cultivation, and distribution. With operations in Australia, Canada, Europe, and Israel, Biortica has established itself as a leader in the medical cannabis market. The acquisition is expected to enhance BOD Science's capabilities and market reach.
The acquisition of Biortica is anticipated to significantly enhance BOD Science's market position and operational capabilities in the cannabis sector. By integrating Biortica's extensive genetic library and cultivation expertise, BOD Science is poised to expand its product offerings and market reach. The transaction is expected to be positively received by investors, though it remains contingent on regulatory approvals.
Investor Reaction:
Analysts are likely to view the acquisition as a strategic move that could bolster BOD Science's growth prospects. However, the requirement for regulatory compliance and shareholder approval introduces some uncertainty. Investors may adopt a cautious approach until these hurdles are cleared.
Conclusion:
As BOD Science progresses with the acquisition of Biortica Agrimed Ltd, investors should closely monitor developments, particularly regarding regulatory approvals and shareholder meetings. This acquisition represents a significant opportunity for BOD Science to strengthen its position in the cannabis market.