CannapharmaRx, Inc. Enters into Purchase and Sale Agreement for a Property in Alberta, Canada
January 12, 2021 at 09:24 pm
Share
CannapharmaRx, Inc. on January 7, 2021 entered into a Purchase and Sale Agreement for a certain property in Alberta, Canada. Pursuant to the PSA, the Company has entered into a definitive agreement to purchase certain assets including the title to related fee simple lands and facility required for the cannabis cultivation and production business, located at and operated out of Cremona, Alberta. The transaction, subject to certain closing conditions, is scheduled to close in February 2021. The Company is purchasing the facilities, free and clear of all encumbrances other than those agreed to in the Purchase and Sale Agreement. The 55,200 square foot facility is capable of producing 5,200 kilograms of cannabis biomass per year. The facility currently holds Health Canada licenses for cultivation and sales of medical dried flower sale, as well as extract and edible sales. Additionally, the facility currently holds EU GMP Certification. Substantial floor space within the facility can be converted to incremental EU GMP drying, curing and packaging facilities. The Company will apply to Health Canada for its own licensing approvals for all cannabis related activities. The Company will pay the Purchase Price for the facility which means the sum of: (i) $12,000,000 and (ii) the Purchaser’s Share of the Option Purchase Price, not including Goods and Services Tax. The payment schedule for the Purchase Price will be a deposit of $100,000 paid on execution of the PSA, the $5,900,000.00, plus 50% of the Purchaser’s Share of the Option Purchase Price, plus the deposit, together with any Goods and Services Tax thereon, subject to adjustments as hereinafter described, shall be paid to the Seller’s solicitor on or before the Closing Date; then $3,000,000 plus the remaining 50% of the Purchaser’s Share of the Option Purchase Price, together with any Goods and Services Tax thereon, shall be paid within 3 Business Days of the Cultivation Licensing Approval Date; and then $3,000,000, together with any Goods and Services Tax thereon, shall be paid within 3 Business Days of the Processing Licensing Approval Date.
CannaPharmaRx, Inc. is focused on the acquisition and development of state-of-the-art cannabis growing facilities in Canada. The Company is engaged in producing customizable medical cannabis and craft products. Its business strategy is to produce a high quality and low-cost production of cannabis through the development, acquisition, and enhancement of existing facilities. The Company is focused on operating high-quality facilities utilizing the latest technology in combined heat and power generation to ensure being a low-cost producer of cannabis. The Company also offers a range of services to assist with cannabis inventory management.