Lucy Scientific Acquires IP Of High Times; Co. Will Issue 19.9% Of Its Outstanding Stock To iHigh Times And Make Semi-Annual Payments For Next 5 Years
Portfolio Pulse from Benzinga Newsdesk
Lucy Scientific is acquiring the IP of High Times and will issue 19.9% of its outstanding stock to High Times. Lucy will make semi-annual payments for the next 5 years based on EBITDA generated from the acquired IP. Lucy will also license the right to operate retail stores and manufacture and sell THC products in the US back to High Times for a license fee of $1.0M per year, increasing to $2.0M per year upon Federal legalization.
September 07, 2023 | 12:05 pm
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Lucy Scientific's acquisition of High Times' IP and the issuance of 19.9% of its stock to High Times could dilute existing shareholders' equity. However, the licensing agreement could provide a steady revenue stream.
The acquisition could dilute the equity of existing shareholders due to the issuance of new shares. However, the licensing agreement with High Times could provide a steady revenue stream, which could potentially offset the dilution effect. The impact on the stock price will depend on how the market perceives these factors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100