Canadian Cannabis Corp. (OTCPK:CCAN) signed a letter of intent to acquire The Hydropothecary Corporation for $21.3 million on October 5, 2015. Under the terms of transaction, Canadian Cannabis will pay $21.3 million in cash including $0.8 million paid as a deposit (half paid on October 16, 2015 and balance paid on October 20, 2015) or $21.3 million in common stock. The deposit is refundable only in the event of a breach of letter of intent by The Hydropothecary Corporation and is otherwise convertible into shares of The Hydropothecary Corporation at a price of $3.07 per share. At closing, Canadian Cannabis intends issuing shares at an exchange ratio of 2.05 shares of Canadian Cannabis Corp stock to every 1 share of The Hydropothecary Corporation stock or paying in cash at $3.65 per share of The Hydropothecary Corporation Stock. Canadian Cannabis has finance of $0.768 million in form of promissory notes through Avonlea Ventures Inc. Canadian Cannabis will issue 2.05 million shares to Sebastien St. Louis, Louis Gagnon, and Adam Miron as consideration for employment agreements. Upon closing, the Hydropothecary Corporation will operate as the wholly-owned subsidiary of Canada Cannabis Corp.

Post-acquisition, Sebastien St-Louis, Co-founder and Chief Executive Officer of Hydropothecary, will be appointed President, Ed Chaplin, Chief Financial Officer of Hydropothecary, will be appointed Chief Financial Officer and Adam Miron, Hydropothecary's Co-Founder and Chief Brand Officer, will be appointed Chief Marketing Officer in Canadian Cannabis. Canadian Cannabis intends to reconstitute its Board of Directors with Benjamin Ward, Vijay Kanwar, Richard Wachsberg, Sebastian St. Louis, and Jane Farnham. The transaction is subject to due diligence, execution of the definitive agreement, attaining regulatory approvals, receipt of all necessary board approvals, and receipt of all necessary shareholder approvals. The transaction is expected to close on November 17, 2015.