AgriCann Solutions Enters into Agreement with Craft Nurseries Canada
Vancouver, British Columbia--(Newsfile Corp. - June 4, 2020) - AgriCann Solutions Corp. (the "Company", "AgriCann" or "ASC") is pleased to announce entering into a binding Letter of Intent ("LOI") and Convertible Loan Agreement ("CLA") with Craft Nurseries Canada Inc. ("CNC").
The general terms and conditions of the LOI and CLA include the following:
ASC funds CNC for up to $600,000 under a 12-month term, 8% interest CLA convertible at ASC's option into shares of CNC at a conversion price of $0.10 per CNC share;
ASC has the right, at any time (the "Put Right") to cause CNC to draw down the entire CLA;
Upon exercise of the Put Right, ASC will convert the entire $600,000 CLA principal into CNC shares amounting to 27.97% of CNC (based on the current capitalization of CNC), and may similarly convert interest accrued and owing under the CLA;
ASC has also been granted an 18-month option to acquire 5 million CNC shares representing a pro forma 23.31% of CNC (based on the current capitalization of CNC post-CLA conversion) from an existing CNC shareholder for $500,000;
CNC management has committed to not change CNC's existing capital structure without ASC's approval;
CNC management have personally committed to, and have committed to use their best commercial efforts to cause existing minority shareholders of CNC to commit to a share exchange with ASC at the ratio of 2.8 shares of CNC for one share of ASC; and
It is expected that upon conclusion of the above steps, CNC will become a wholly-owned subsidiary of ASC.
About Craft Nurseries Canada Inc.
CNC's nursery is located in Lake Country, British Columbia, on Agricultural Land Reserve (ALR) property zoned for cannabis cultivation. CNC has been issued a building permit by the District of Lake County and has completed its initial build-out. CNC's Master Grower and Alternate Master Grower currently operate CNC under a Health Canada "Access to Cannabis for Medical Purposes" (ACMPR) Licence.
CNC has received a Cannabis Tracking and Licensing System (CTLS) registration number with Health Canada and is progressing through the intake and screening process to acquire a Cannabis Nursery Licence. The Cannabis Nursery License is a license category the allows holders to produce and sell marijuana and hemp genetics, including seeds and clones. This licensing positions CNC to capitalize on the growing demand for diversified starting plant material.
Cannabis licensees currently struggle with limited access to seedlings and clones. CNC's focus is on the supply end of the cannabis industry, developing genetics (both cannabis and hemp) to produce seedlings and clones, specializing in medicinal high-CBD as well as THC strains. CNC is specifically targeting the supply and sale of superior starter plant materials (seedlings and clones) directly to a relatively starved niche market of licensed growers whose primary focus is growing to flower stage, as well as licensed retail store outlets, cultivators, other nurseries, processors, analytical testers, researchers and cannabis drug licence holders.
About AgriCann Solutions Corp.
The Company is a "Reporting Issuer" that originated as one of three spinouts upon completion of a statutory plan of arrangement completed by The Valens Company (formerly Valens GroWorks Corp.) on March 12, 2015. The Company seeks to acquire a suitable business opportunity with potential for scalable near-term cash flow and sustainable growth to create shareholder value.
ON BEHALF OF AGRICANN SOLUTIONS CORP.
(signed) "Rob van Santen"
CEO & Director
For further information, please contact:
Robert van Santen, CA, CPA, CMT
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law. The Company will provide further updates respecting these initiatives as developments occur. There can be no assurance that interests in any or all of these or additional projects being pursued will be acquired, funded and/or commercialized.
AgriCann Solutions Corp.
400-1771 Robson Street, Vancouver, BC, Canada V6G 1C9
Tel. +1.604.608.1999 ~ Fax. +1.778.379.9990
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/57277