Cannabis Sativa. Inc. (OTCQB: CBDS) announced that they acquired 51% of Prestodoctor. Prestodoctor is an online telemedicine platform that connects patients to knowledgeable physicians to get a medical marijuana recommendation using their secure video conferencing technology. This acquisition provides Cannabis Sativa a controlling interest into Prestodoctor.
More on Prestodoctor
PrestoDoctor launched March 2015 with a mission to bring an exceptional, VIP, experience to patients seeking a medical cannabis recommendation via telemedicine. They offer privacy and convenience while still offering a completely legal medical marijuana recommendation platform, that you can do all in the comfort of your home.
Early this year Prestodoctor unveiled the first telemedicine kiosk for cannabis dispensaries across California and Nevada to allow potential patients to obtain their medicinal license quickly, safely, efficiently, and less expensive.
We got a chance to speak with Kyle Powers, CEO of Prestodoctor on this to help provide our readers some advice on this process.
How did the managing team approach this acquisition?
We were introduced to the CBDS team through a mutual connection that we met at a cannabis conference. One warm introduction can be worth more than 100 cold emails.
Do you have any insight on things you ran into behind the scenes that were one of the biggest learning lessons?
You will need to spend quite a bit of time gathering all the necessary documents (historical financials, future projections, etc), so it’s best to keep all of this organized well before you actually need it. Also, be prepared for audits; having clean and organized books is a must.
Can you give us an idea of what this acquisition means for the team behind Prestodoctor? I.E. Will the founding team still be involved in the company?
The founding team and all current employees will be sticking with the company post-acquisition. This partnership with Cannabis Sativa, Inc. simply means that we will have access to a broader network and will be able to expand faster into new markets.
With this acquisition can you give us some highlights on what our readers can expect to see from Prestodoctor in the future?
You can expect to see PrestoDoctor on the east coast very soon, watch out for some announcements coming up!
More on the Deal Between Cannabis Sativa and Prestodoctor
The agreed deal states for Cannabis Sativa to acquire a 51% ownership interest in PrestoCorp, in exchange for $4,560,000 payable in restricted shares of Cannabis Sativa common stock at a valuation of $4.4686 per share – a total of 1,027,169 shares of CBDS stock.
The CBDS stock issued pursuant to this Securities Purchase Agreement will be subject to a Lock-up/Leak-out Agreement and 45% of such shares will be held in escrow to be released or forfeited based upon business performance.
The Sellers have been granted a contingent value right based upon the 30-day average price per share of CBDS common stock on the first anniversary of the Closing, and 45% of such issuance, if any, would be retained in escrow pursuant to the terms.
Cannabis Sativa has also agreed to provide Presto with a $500,000 revolving line of credit at an interest rate of 5% per annum. Interest only payments are due quarterly and the credit line is to be paid in full within 36 months after Closing. Presto will have the ability to draw down $200,000 during August 2017 and up to $100,000 each month thereafter up to the $500,000 limit.
To read more about the filed Form 8-K with the SEC by Cannabis Sativa disclosing the terms of the acquisition, click here.
Interested in speaking with a physician to discuss getting your own medical recommendation card? Click here.