Compass Venture Secures Definitive Agreement to Acquire CanniOasis

Compass Venture Inc. (TSXV:CVI.P) has announced the signing of a definitive agreement to acquire CanniOasis Pte. Ltd., a Singapore-based biopharmaceutical company focused on cannabinoid medicine for neurological diseases. This strategic acquisition aims to expand Compass Venture's portfolio and strengthen its position in the burgeoning cannabis industry.

The acquisition, valued at CAD 18 million, involves Compass Venture acquiring 100% of CanniOasis' issued and outstanding ordinary shares through a share exchange ratio of one Compass share for every 1.22 CanniOasis shares. Upon closing, the name of the resulting issuer will include 'CanniOasis' or another acceptable name, and CanniOasis will appoint new directors and officers to manage the business.


The transaction is subject to customary closing conditions, including the approval of the TSX Venture Exchange, minority shareholders of both companies, and the execution of a definitive agreement by the parties. The completion of the transaction is expected within five business days following the satisfaction or waiver of these conditions.

Dr. Kah Meng Lim, CEO and director of Compass Venture, also serves as the controlling shareholder, director, and chairman of CanniOasis. As a related-party transaction, the acquisition requires minority shareholder approval and a special meeting of shareholders. Compass Venture will file an information circular on SEDAR+ with prospectus-level disclosure regarding the transaction, CanniOasis, and the resulting issuer.


The acquisition of CanniOasis fits seamlessly into Compass Venture's existing portfolio and business strategy, as both companies focus on innovative healthcare solutions. The acquisition expands Compass Venture's market reach and potential customer base by entering the lucrative cannabis industry, particularly in the realm of neurological diseases.

For Compass Venture shareholders, the acquisition presents potential benefits, such as exposure to a high-growth market and the opportunity to participate in CanniOasis' innovative research and development efforts. However, risks include integration challenges, regulatory hurdles, and the competitive nature of the cannabis industry.

In conclusion, Compass Venture's definitive agreement to acquire CanniOasis is a strategic move that aligns with its business objectives and offers potential value creation for shareholders. As the transaction progresses, investors should monitor the developments and assess the impact on Compass Venture's long-term financial projections and shareholder value.