The final closing of the transaction is expected to take place on or before 07 July 2014.
The acquisition is a significant milestone for GelStat and is expected to add more than $500,000 in revenue in the third quarter ending 30 September 2014.
GelStat chairman and CEO Larry Gershman said the acquisition of Mastix Medica adds another dimension to the company that complements its present experience in product innovation and marketing.
"The vertical integration also enhances our profitability of recently introduced dietary supplement Chews 2 Lose appetite suppressant gum," Gershman said.
"More importantly, the acquisition brings to GelStat a key asset and foothold in the explosive high CBD/low THC industrial hemp and medical marijuana market.
"We are also excited to be adding Bob Estey to our management team as he brings a wealth of financial management experience as well as manufacturing capabilities to the GelStat team."
Robert (Bob) Estey said that he is happy to become part of the GelStat team.
"The combination of their leading scientific advisors and marketing team with our unique, proprietary manufacturing processes makes us a vertically integrated one-stop shop for product innovation from concept through manufacturing, clinical validation and marketing," Estey said.
"Furthermore, Larry’s deep knowledge of the CBD market and vast industry connections worldwide have already opened up significant opportunities in this rapidly growing market."