CanadaBis Capital Inc. announced on April 28 that CanadaBis (Stigma Grow) had terminated a proposed deal in which another cannabis company, Simply Solventless Concentrates, would acquire CanadaBis.

Under the initial acquisition agreement, dated March 11, 2025, Simply Solventless (SSC) would have acquired all of the issued and outstanding common shares of CanadaBis (Stigma).

CanadaBis is the parent company of cannabis brands such as Stigma Grow and Dab Bods, as well as companies like Stigma Roots, Goldstream Cannabis, and the INDICAtive Collection.

Simply Solventless had estimated that the deal would have made the company rank second and fifth in the Canadian concentrates and pre-roll categories, respectively, excluding Quebec. 

CanadaBis states that recent information constitutes an “SCC Material Adverse Change” under the terms of the agreement with SSC, and management believes it’s in the best interest of CanadaBis’s shareholders and stakeholders to terminate it. 

In a press release on April 30, Jeff Swainson, President and CEO of SSC said the company is objects to the mover and is pursing legal action.

“SSC refutes that any material adverse change has happened to our business and SSC is pursuing all legal remedies against CanadaBis, including payment of a $1.2 million break fee, for the invalid termination of the Arrangement Agreement. CanadaBis raised $4.1 million capital after the Arrangement Agreement was announced, while SSC incurred cost and worked in good faith to close the transaction. We are not deterred, and upon filing our financial statements we are steadfastly committed to our business plan.”

This article has been edited to include Swainson’s comment.

CanadaBis Capital Inc. reported gross revenue of $9 million and net revenue of $4.9 million for the three months ended January 31, 2025 (Q2 2025), with net income and comprehensive income of $96,917. 

Net revenue was up 27% year-over-year from $7.1 million in Q2 2024. The company incurred $4.1 million in excise taxes in the most recent quarter, representing a rate of 45% of sales. 

The company operates a 66,000-square-foot facility, of which approximately 44,000 square feet of the building has been developed and equipped for the capacity to grow 225 kg of cannabis per year. The majority of its footprint is equipped and being used for the production of cannabis products such as extracts and infused pre-rolls.

Simply Solventless recently projected consolidated Q1 2025 net income and comprehensive income of approximately $9.4 million, including an anticipated $7 million purchase gain on the acquisition Humble (formerly Delta 9 Bio Tech), which closed on February 28, 2025 and will be reported in the financial results for the period ending March 31, 2025.

Related Articles

CanadaBis/Stigma Grow complete cannabis shipment to Portugal

January 14, 2025

Simply Solventless seeks to acquire CanadaBis/Stigma Grow

March 12, 2025

Simply Solventless closes on Delta 9 deal, changes name to Humble Grow

February 28, 2025