AgraFlora Organics Closes Acquisition of Sanna Health

VANCOUVER, British Columbia, March 13, 2020 (GLOBE NEWSWIRE) -- AgraFlora Organics International Inc.  (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF) is pleased to report that it has closed the acquisition of Sanna Health Corp. (“Sanna”), originally announced on December 5, 2019. Sanna is a Canadian cannabis company based in the Greater Toronto Area (GTA) which holds a standard cultivation, standard processing, and medical sales licences awarded under the Cannabis Act.

ABOUT SANNA HEALTH

EXTRACTION

Sanna is headquartered in the GTA, only 30 minutes from downtown Toronto, affording the Company access to Canada’s largest 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. Sanna holds an option to expand its current production area to 89,000 square feet, as well as ample commercial-industrial space for future expansion.

With ethanol extraction equipment installed on-site and high-margin agreements being negotiated to process upwards of 1,000 kg of hemp biomass per month, Sanna is primed to realize sustainable, near term cash flows. The Company forecasts that once optimized and upon receipt of the required licence amendment, Sanna’s extraction facility will boast annual extraction capacity of 250,000 kilograms of dried cannabis and hemp biomass, much of which will be supplied by the Company’s 88-acre outdoor cannabis grow located less than 90 minutes from its GTA headquarters, permitting streamlined logistics and reduced transportation costs.

OUTDOOR CULTIVATION

Sanna owns an 88-acre late-stage Health Canada outdoor cultivation applicant. The Company plans to submit its affirmation of readiness and video evidence package for its initial 13-acre Zone One outdoor immediately following closing of the share exchange, in preparation for the 2020 outdoor cultivation season.

Located in Southwestern Ontario, Sanna’s Zone One 13-acre outdoor grow is forecast to produce up to over 1,000 kg per acre of high-quality, low-cost cannabis flower, with a per gram unit contribution of less than $0.10. Sanna’s planned Zone Two outdoor grow expansion will add an additional 75 acres of cultivation expanse and once licenced is expected to yield over 75,000 kg of dried cannabis per harvest.