Lifeist reverses plan to exit cannabis industry and buys vaporizer technology – Lifeist Wellness (OTC:LFSWF)

Lifeist Wellness LFSWF has acquired all of the shares of 1000594871 (4871) Ontario Corp., which owns vaporizer technology. The news marks a reversal of Lifeist’s recently announced plan to exit its traditional cannabis business.

What happened: The Toronto, Ontario-based health-tech company announced Friday that it has completed the acquisition of 4871. 4871 holds key intellectual property resulting from a patent application and all related rights.

The pending patent application was purchased for one million shares of Lifeist. If the patent is granted, Lifeist or 4871 will be obligated to pay the seller of 4871 50% of all net proceeds from the granted patent, up to a maximum of CA$1 million (US$730,910). If the granted patent is sold, transferred or otherwise disposed of during its term, Lifeist or 4871 will be obligated to pay 50% of the consideration received plus any deferred payments at closing, up to an aggregate amount of CA$1 million.

Read also: Flora Growth is listed on the Frankfurt Stock Exchange and wants to establish contact with European investors

Why it is important: The acquisition of this intellectual property will to give shareholders the opportunity to participate in new developments in the cannabis industryy, even as the company separates from CannMart and moves away from direct cannabis business and flower contact.

The acquired patent application addresses Product technologies for the high potency cannabis concentrates market, which was valued at $6.17 billion in 2023 and is expected to grow to $44.35 billion by 2032 with a compound annual growth rate (CAGR) of approximately 24.5% between 2024 and 2032.

Previously Meni Morim, Lifeist’s CEO said the company’s second-quarter performance was “another clear indication that we need to move away from our traditional cannabis business segments and find other solutions that reach the broader wellness market.”

Despite this new acquisition, the company does not seem to be turning away from the cannabis industry.

Price promotion

Lifeist shares ended Friday’s trading session unchanged at $0.08 per share.

Read more:

Simply Solventless acquires CannMart as part of its expansion into hydrocarbon-based cannabis concentrates

Photo: Courtesy of SD_FlowerPower via Shutterstock