AgraFlora Organics Provides Corporate Update
VANCOUVER, Feb. 28, 2019 /CNW/ - AgraFlora Organics International Inc. (the "Company") (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a growth oriented and diversified international cannabis company, is pleased to provide an update to recent corporate activities and to the previously announced Equity Participation and Earn-In Agreement with Delta Organic Cannabis Corp. ("DOCC") for up to a $40 million investment at a price of approximately $0.45 per share for the retrofit of a large-scale medical cannabis cultivation operation in Delta, British Columbia.
Concurrently with the retrofit of the 2,200,000 square foot greenhouse complex located in Delta, BC, the Company has reached several important milestones in the past four months:
- $20 million investment received from DOCC for the previously announced Equity Participation and Earn-In Agreement,
- Cannabis supply agreement signed with Namaste Technologies for up to 25,000,000 grams of cannabis or 10% of total production from the Delta Greenhouse Complex for $4 per gram,
- Engaged good manufacturing practices (GMP) facility experts to design post production exports for the European Union (EU) in preparation for the first crop of cannabis to be planted at its the large-scale Delta Greenhouse Complex,
- Acquired the remaining interest in licensed producer AAA Heidelberg making it a wholly owned subsidiary,
- Propagation supply agreement signed with Cabbay Holdings Corp. to supply high-CBD cannabis plants for a 5-acre outdoor grow operation,
- Letter of intent executed with Blox Labs to build a best-in-class team of professionals to manage and operate state-of-the-art agricultural greenhouse facilities,
- Formed Glow Life Technologies in partnership with Relay Medical Corp. to pursue medical related technology opportunities in the global cannabis sector,
- Large library of cannabis seed varieties from diverse lineages acquired from a private genetics firm.
In addition, AgraFlora expects to be in receipt of the balance of the funds of the financing ($20 million) by March 31, 2019. Due to the size and complexity of the transaction, additional time is required to complete the transaction.
We have made considerable progress over the past four months as we moved from an AMCPR applicant to an innovative high-quality licensed cannabis producer
said Derek Ivany, President and CEO of AgraFlora Organics.
We continue to move aggressively to prepare the Delta Greenhouse Complex for its first cannabis crop. We are focused on installing an advanced security system along with state-of-the-art lighting, watering and air purification technology to meet and exceed all regulatory and industry standards. We are also pursuing cannabis supply agreements with domestic and international customers in preparation for the first crop to be planted in Delta, BC. I would like to thank the project team for all their work and effort to keep the conversion of the Delta Greenhouse Complex on schedule and on budget. When at full capacity the Delta facility will be the second largest cannabis production site in Canada
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.