Arrangement Agreement Between CanadaBis Capital and Simply Solventless Inc. Terminated

On April 28, 2025, CanadaBis Capital Inc. announced the immediate termination of its Arrangement Agreement with Simply Solventless Concentrates Ltd. (SSC). Initially entered on March 11, 2025, the agreement outlined a plan for SSC to acquire all outstanding shares of CanadaBis through a court-approved transaction under Alberta's Business Corporations Act. However, recent developments prompted CanadaBis's management to determine that a significant adverse change at SSC warranted the termination of the agreement, deeming it in the best interests of CanadaBis shareholders and stakeholders.

The decision to end the Arrangement Agreement led to the automatic termination of various voting and support agreements that had been established by individuals who agreed to support the transaction. Consequently, the special shareholder meeting initially planned for CanadaBis was canceled as a result of this development.

CanadaBis is known for its vertically integrated operations within the cannabis sector, specifically focusing on the growing concentrates market through its Stigma Grow cultivation and extraction facilities. The company's strategy emphasizes large-scale growth as it seeks to establish a strong foothold in the evolving global cannabis industry.

Stakeholders and investors may find CanadaBis's decision to halt the acquisition significant, reflecting the complexities and risks involved in navigating corporate transactions within a rapidly changing market landscape. Further information about CanadaBis can be accessed through its official websites, which provide insights into its operations and future directions. As this situation unfolds, industry watchers will be keenly observing any subsequent actions taken by CanadaBis in response to terminating the Arrangement Agreement with SSC.

The recent termination of the Arrangement Agreement between CanadaBis Capital Inc. (TSXV: CANB) and Simply Solventless Concentrates Ltd. (TSXV: HASH) raises significant implications for investors and market observers. The termination, effective immediately, suggests considerable underlying issues with Simply Solventless that CanadaBis deemed detrimental—characterized as an "SCC Material Adverse Change." This decision indicates a strategic pivot by CanadaBis management to protect shareholder value amid uncertainties.

For investors, this situation highlights the risks associated with mergers and acquisitions in the cannabis sector. CanadaBis, which has positioned itself as a vertically integrated player in the Canadian cannabis market, is particularly focused on the concentrates category. The aborted deal may prompt reevaluations of growth strategies and market perceptions of CanadaBis's operational stability. Investors should remain cautious, as a failed acquisition could signal deeper systemic issues or ongoing challenges related to industry volatility and competitive pressures.

Moreover, with the cancellation of the special meeting of CanadaBis shareholders, the opportunity for shareholders to voice their opinions or influence corporate strategy has been curtailed, further increasing investor anxiety. This outcome could lead to a reevaluation of CanadaBis's stock price, as sentiment in the cannabis sector heavily influences market valuations.

Long-term investors may view this as a pivot point, presenting an opportunity to accumulate shares at potentially lower prices if they believe in the long-term growth prospects of CanadaBis. However, given the current climate and the potential overhang from the terminated arrangement, those considering investment should conduct thorough due diligence, evaluating both the company's fundamentals and broader market conditions, including regulatory risks and competitive dynamics in the burgeoning cannabis industry.