AgraFlora Organics To Acquire 88-Acre Outdoor Cannabis Grow and 27,000 Sq. Ft. Licensed Cannabis Processing Facility
VANCOUVER, British Columbia, Dec. 05, 2019 (GLOBE NEWSWIRE) -- AgraFlora Organics International Inc. (“AgraFlora” or the “Company”)
(CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF), a growth oriented and diversified international cannabis company, is pleased to announce the Company has entered into an interim
agreement (the “Agreement”) to acquire 100 per-cent of the issued and outstanding shares of Sanna Health Corp. (“Sanna”). Sanna is a Canadian cannabis company based in the Greater Toronto Area (the
“GTA”), which boasts the following licenses awarded under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”):
- Standard Cultivation License;
- Standard Processing License; and,
- Medical Sales License.
Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora stated: “This is a landmark acquisition for AgraFlora, a transaction that is markedly as transformative as it is accretive- resulting in only an 8 per-cent escrowed, millstone centric dilution to our existing capital structure and a four-pronged strategic advantage for AgraFlora:
- The integration of Sanna will more than double our forecasted 2020 production capacity;
- Sanna’s existing on-site infrastructure will allow for complementary, margin-rich extraction capabilities, as well as a mission-critical east-cost high density population presence;
- Affording us access to a proven and popular, market-leading brand/product portfolio which supplements our already identifiable and successful high-calibre brand suite; and,
- Equally critically, the acquisition of Sanna will enhance our high-visibility distribution across Canada as the Company gears up for a significant 2020 retail presence across the country, as well as other emerging jurisdictions.”
Sanna is headquartered in the GTA, only 30 minutes from downtown Toronto, affording the Company unbridled access to the largest addressable Canadian cannabis marketplace. Sanna’s flagship facility is situated on 16 acres and includes 27,000 square feet of Health Canada licensed cultivation and processing space. Coupled with an option to expand its current production area to 89,000 square feet, as well as ample commercial-industrial space for future expansion. Once Ontario’s anticipated regulatory changes take effect, expanding retail opportunities, Sanna will look to architect and operate an on-site dispensary, allowing the Company to capitalize on its prime proximity to the seven million population in the GTA and immediately surrounding areas.