Target Company Overview
Global Cannabis Applications Corp. (“GCAC” or the “Company”), listed on CSE:APP, FSE:2FA, and OTC:FUAPF, has successfully finalized its acquisition of WasteTrakr Technologies, Inc. (“WTT”). This transaction, referred to as the “Acquisition,” was executed under a Share Exchange Agreement among GCAC, WTT, and its shareholders. Following the completion of this Acquisition, WTT is now a wholly-owned subsidiary of GCAC.
Under the terms outlined in the Definitive Agreement, GCAC acquired 100% of the issued and outstanding securities of WTT in exchange for shares of GCAC. Before the Acquisition, WTT had a total of 10,000,000 common shares in circulation. As part of the consideration of this transaction, GCAC issued a total of 2,310,108 common shares, designated as the “Consideration Shares,” to WTT’s shareholders based on their respective ownership proportions. Additionally, 256,692 shares, known as the “Holdback Shares,” are being retained as security for the warranties and covenants provided by WTT and its shareholders.
Industry Overview
The cannabis industry in Canada has been experiencing significant growth, bolstered by regulatory developments and increasing public acceptance. Since Canada legalized recreational cannabis in October 2018, the market has witnessed a surge in investment, innovation, and product diversification. This growth trend has prompted numerous businesses to enter the market, creating a competitive landscape focused on quality and compliance.
Furthermore, the demand for cannabis-related technology and services, such as WasteTrakr's waste management solutions, has amplified. As sustainability becomes more crucial within the cannabis sector, companies are seeking effective methods to handle waste responsibly while maintaining compliance with stringent regulations.
Canada's cannabis industry also benefits from established research and development ecosystems and supportive governmental policies. With advancements in technology and increasing consumer demands, there is an ongoing need for innovative solutions that enable businesses to optimize their operations and enhance sustainability efforts.
Rationale Behind the DealThe acquisition of WasteTrakr Technologies aligns with GCAC's strategic objectives to expand its technological capabilities within the cann…