Blox Labs signs LOI to acquire Best Cannabis Products
BLOX LABS Inc. began a review of potential strategic acquisitions last week, with a specific focus on transactions within the legal cannabis sector, and it seems that the company may have already secured a unique and potentially profitable opportunity. Perhaps coincidentally, in anticipation of the upcoming legalization of recreational cannabis in Canada on Oct. 17, just this week, Blox entered into a non-binding letter of intent with Best Cannabis Products Inc., a privately held Canadian company that is backed by successful repeat entrepreneurs who are now turning their attention to the cannabis space. Pursuant to the agreement, and subject to finalization of mutual and customary due diligence and regulatory approval, Blox may acquire all of the issued and outstanding securities of Best Cannabis Products in exchange for securities of Blox.
After recently completing a private financing round, BCP secured a state-of-the-art agricultural facility in Leamington, Ont., with 180,000 square feet of growing space on 50 acres of land. This means that, if and when they can become licensed to produce and sell, they not only have enough space to start cultivating substantial quantities of cannabis for the Canadian market, but they also have considerable room for growth. According to BCP, the Leamington facility could be expanded to cover upward of one million square feet. Additionally, BCP has taken the all-too-crucial step of enlisting the services of cannabis industry professionals David Hyde & Associates, as well as Eurofins to assist in preparing its Access to Cannabis for Medical Purposes Regulations licensed producer application that will be submitted to Health Canada in short order.
Should it pass muster, the potential BCP acquisition represents an intriguing acquisition opportunity for Blox as it could not only give the company access to the potential profits that may be generated from the cannabis cultivated at the Leamington facility, but it would also grant it another avenue through which it can further the adoption of its proprietary blockchain-driven supply chain management platform, CannaBlox. As the development of the platform is a joint venture between Blox and Liberty Leaf Holdings Ltd., another ACMPR applicant, there already exists one outlet for the adoption of CannaBlox. If Blox is successful in completing the acquisition of BCP, CannaBlox would officially have two irons in the fire and would be increasingly well positioned to make its platform a commercialized option among producers and retailers in Canada.
For those unfamiliar with CannaBlox, it is a proprietary blockchain-driven software solution that allows businesses and regulatory bodies to track cannabis transactions in an incorruptible system, all the way from seed to sale. It was developed in response to suggestions made by technology companies, like IBM, after certain government entities within Canada asked the private sector for advice on the best type of platform to use to track the growth, distribution and sale of marijuana.
About Blox Labs Inc.
Blox Labs is a technology development company focused on creating best-in-class software solutions driven by emerging trends in blockchain, smart contracts and decentralized applications. Blox Labs is helping customers with solutions for business problems from proofs of concept through execution. The company is currently piloting blockchain solutions for supply chain management and improvement, as well as other areas. Blox Labs is actively targeting partnerships and strategic acquisitions of growth companies.