EuroLife Brands (OTCMKTS:EURPF) has announced that is has commenced a due diligence assessment for a possible transaction. The transaction will see EuroLife’s cannabis education platform and related data analytics isolated into a different entity that will operate independently.
Formation of BioScience NewCo
The decision to pursue the transaction was arrived at through internal corporate review as well as discussions with EuroLife’s strategic advisors. The special purpose entity, BioScience NewCo, will act as a bridge between patient R&D, Cannabis education, and Pharmaceutical R&D opportunities in the European theatre.
Equally, there are plans of spinning off BioScience NewCo to EuroLife stockholders through a Plan of Arrangement as per the Business Corporations Act in the future. The company shall determine the stock dividend exchange ratio at a future date.
The Arrangement is supposed to offer more value to the EuroLife stockholders by unlocking the cannabis education platforms and associated data analytics. This is achievable through proper management, synergy capture as well as enhancing corporate structures. The company considers corporate structuring of its data analytic assets as a way of enhancing shareholder value through the eradication of disambiguation of assets. Equally, having stand-alone operations will enable flexibility in the pursuit of new business opportunities for each independent entity.
BioScience NewCo to pursue additional growth avenues
BioScience NewCo will focus on having more growth avenues besides the current operations of the Cannvas.Me cannabis platforms. Other growth avenues include partnerships with synergistic companies, funding, and formulations as well a carrying R&D on novel biopharmaceutical and nutraceutical products. Equally, the entity will focus on data capture and analytics for clinical studies as well as white label and licensing opportunities in the public and private sectors.
The current CEO of EuroLife Shawn Moniz, will lead BioScience NewCo. Shawn has a lot of sector experience in pharmaceutical as well as brand strategy marketplace. He has worked before for pharmaceutical companies such as Astellas, Abbvie, Novartis, and Astra Zeneca.
The anticipated transaction is, however, subject to finalization of the economic benefit analysis, regulatory approval, adequate funding as well as shareholder approval by at least two-thirds of EuroLife shareholders.
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