Cannasouth Limited (NZSE:CBD) agreed to acquire remaining 40% of stake in Midwest Pharmaceutics NZ Limited from Greenmeadows Health Limited and Mark Balchin for NZD 1 million on June 4, 2021. Cannasouth will acquire the remaining 40% of the shares on issue in Midwest that it does not already own, together with all shareholder loans made by the Midwest Vendors to Midwest for an aggregate purchase price of NZD 1,026,000. The issue of NZD 880,000 of new ordinary fully paid shares in Cannasouth. The payment of NZD 146,000 in cash which will be paid as follows (i) The sum of NZD 73,000 will be paid on that date being 12 calendar months after the completion of the transaction and (ii) the further sum of NZD 73,000 will be paid on that date being 18 calendar months after the completion of the transaction. Cannasouth purposes to undertake a capital raising to fund the transaction. Midwest Pharmaceutics has a revenue of NZD 2.2 million and net loss of NZD 0.249532 in 2020. Chief Executive Officer of Midwest, Mark Balchin, will continue as Chief Manufacturing Officer for the Group. The Midwest transaction is conditional on the parties obtaining the approvals of several landlords and regulators to the change in control of Midwest on or before August 31, 2021. As of July 16, 2021, Cannasouth Limited was looking to raise up to NZD 6 million to partially fund the transaction. CM Partners Limited acted as financial advisor to Cannasouth.