AgraFlora Organics Agrees to Sell its Interest in Greece to Focus on North American Market
VANCOUVER, May 3, 2019 /CNW/ - AgraFlora Organics International Inc. ("AgraFlora" or the "Company") (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a growth oriented and diversified international cannabis company, is pleased to announce that it has sold its rights to AgraLeaf SA in Greece in exchange for common shares of Roughrider Capital Corp. ("Roughrider") valued at 150% of AgraFlora's original investment in the Greek venture. AgraFlora anticipates it will own approximately 8% of the common shares of Roughrider after the closing of the transaction. Further, AgraFlora intends to enter into a supply agreement with Roughrider's Greek pharmaceutical partner to purchase cannabis flower and oils for its pharmaceutical products. The agreement will also extend to AgraFlora genetics and technical support.
Our new strategic relationship with Roughrider Capital and its European partners is a tremendous opportunity for AgraFlora to supply the world's second largest cannabis market: the European Union
said Derek Ivany, President & CEO, AgraFlora Organics International Inc.
The sale of our ownership in AgraLeaf SA allows our management team to focus solely on our Canadian operations and bringing the first phase of the Delta Greenhouse Complex online, which is projected for the third quarter of 2019. A supply agreement with Roughrider's partners in Greece will provide access to the Greek and ultimately EU cannabis markets for our high-quality cannabis flower and oils. We also envision extending our relationship by participating with Roughrider and its European partners in clinical studies on the use of cannabinoids for the reduction of high blood pressure and anxiety
AgraFlora announced in September 2018 its intention to enter the European Markets through an investment in Greeceand on April 3, 2019 the Company announced its intention to create a Greek company with Liberty Leaf named AgraLeaf SA to gain entry into the medical cannabis market in the European Union. AgraFlora has established a team in Greece consisting of personnel with expertise in commercial horticulture, government affairs, legal and finance. Liberty Leaf has also agreed to sell its interest in AgraLeaf SA to Roughrider.
The fertile agricultural regions of Greece combined with relatively low-cost labor and property prices make it a prime locale for medical cannabis cultivation. In November 2018, Greece issued the first licenses to private companies for growing medicinal cannabis. Greece is considered a gateway to the European Union, which is home to more than 500 million people.
Roughrider Capital Corp. is a Canadian investment company that holds a 70% ownership interest in a licensed medicinal cannabis company in Lesotho where it has commenced development of its cultivation operations. The Company also maintains stable oil production through operations in southeastern Saskatchewan. The Company is focused on adding, creating and increasing value through the acquisition and development of value-added assets across a variety of sectors.
AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London, ON and is a joint venture partner in Propagation Service Canada and its large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The Company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry. For more information please visit: www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
President & CEO
No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
SOURCE AgraFlora Organics International Inc.