TransCanna Holdings (CSE: TCAN) (FSE: TH8) this morning announced that it has signed definitive closing documents to acquire a 196,000 square foot facility on 5.5 acres of land as well as cannabis packaging and processing equipment for a total purchase price of $15 million. Over the past two years, the facility has undergone $8 million in key renovations which have formed specific divisions for nursery, cultivation, manufacturing, extracting, bottling, remediation, and transportation and distribution. The company paid the sellers a $250,000 non-refundable deposit and will pay an additional $8 million down payment. The seller agreed to a carry back note of $6.750 million at 7% p.a. interest only for up to thirteen months, with an initial maturity date of October 15, 2019, subject to a six-month extension. TCAN also agreed to pay the seller $200,000 and issue 500,000 common shares upon closing of the acquisition as consideration for the seller’s agreement to accept the note and to provide an additional one-month extension. In addition, TCAN agreed to amend the vesting schedule applicable to the 1.2 million share purchase warrants it agreed to issue to the seller, conditional upon the closing, for a previously agreed extension. Each warrant can be exercised to acquire one common share of the company at a price of $2.60 each for a five-year period from the date of issuance, vesting quarterly in equal portions over the initial 12 months of the five-year term beginning on the date of the original extension, being February 21, 2019. TCAN intends to close the acquisition as soon as possible following the conclusion of its brokered private placement which is currently anticipated to close on or around March 28, 2019.
“Acquiring arguably the largest vertically integrated cannabis centric three-story multi-purpose facility in California reinforces our strategy to be fully self-contained in our ecosystem. We also have an additional 5 acres in the green zone adjacent to the facility to build up to 600,000 sq. ft. three-story grow facility to supply our own biomass for the brands we acquire or create,” TransCanna Holdings CEO Jim Pakulis stated in the news release.
To view the full press release, visit http://cnw.fm/OuF4i
About TransCanna Holdings Inc.
TransCanna Holdings is a Canadian-based company providing branding, transportation and distribution services, through its wholly-owned California subsidiaries, to a range of industries including the cannabis marketplace. For more information, visit the company’s website at www.TransCanna.com.
NOTE TO INVESTORS: The latest news and updates relating to TCAN are available in the company’s newsroom at http://cnw.fm/TCAN
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