TransCanna Executes LOI To Acquire The Business and Assets of Premier Indoor Cultivator Lyfted Farms
via NetworkWire – TransCanna Holdings Inc.
(CSE:TCAN: XETR: TH8) (“TransCanna” or the “Company”) is pleased to
announce the execution of a non-binding Letter Of Intent dated May
17, 2019 (the “LOI”) with Lyfted Farms, Inc. (“Lyfted”), of
Modesto, California, to acquire the business and assets of Lyfted
(the “Proposed Acquisition”). Lyfted Farms is a state licensed
producer of high quality indoor grown cannabis. The three
permanent state licenses that Lyfted owns are for cultivation
(nursery), cultivation (grow), and distribution.
“The Proposed Acquisition includes an exceptional brand, with a
range of high-end flower, growing revenues, fifty exotic and
unique genetic strains and a team that’s been a staple in the
Modesto valley with over two decades of cultivating experience. In
short, this is another example of an ideal acquisition candidate
for TransCanna that offers SKU velocity, growing revenues and
branded products that differentiate from others in the
marketplace,” stated Jim Pakulis, CEO of TransCanna.
“Being a premier cultivator, we thrive on new, cutting edge
processes to generate superior results. We’re extremely excited
about joining forces with the team at TransCanna,” stated Bob
Blink, President of Lyfted Farms.
“The acquisition by TransCanna would allow us to solve our
biggest current challenge, which is the limited cultivation space
at our indoor facilities. We’re already the number one
selling vendor of products among the top seven dispensaries
locally. It’s now time for us to scale throughout the state.
TranCanna’s impressive facility in Modesto, not far from our
present location, and their vertically integrated strategy,
including distribution, will enable us to achieve that.”
On closing of the Proposed Acquisition, Lyfted will receive
total consideration of US$5.5 million in cash and one million
shares. The Company will pay US$2.75 million at closing and issue a
12 month, unsecured, interest only note for $2.75 million at 7%
interest p.a. (the ”Note”). The Note is repayable by the Company in
part or in full anytime during its 12 month term. The Company is
paying a non-refundable deposit of US$50,000 in cash, which is
deductible from the total consideration payable under the terms of
the Proposed Acquisition.
The Proposed Acquisition is subject to completion of due
diligence, execution of a definitive asset purchase agreement,
which is to be completed within 45 days of the date of the LOI, and
relevant regulatory approvals. There can be no assurances that the
completion of the Proposed Acquisition will occur on the terms set
forth above or at all.
For further information, please visit the
Company’s website at www.transcanna.com.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a Canadian-based
company focused on providing integrated branding, transportation
and distribution services, through its wholly-owned California
subsidiaries, to a range of industries including the cannabis
For further information, please visit the
Company’s website at www.transcanna.com or email the Company at
On behalf of the Board of Directors
James PakulisChief Executive Officer
Telephone: (604) 609-6199
The information in this news release includes
certain information and statements about management's view of
future events, expectations, plans and prospects that constitute
forward looking statements. These statements are based upon
assumptions that are subject to significant risks and
uncertainties. Because of these risks and uncertainties and as a
result of a variety of factors, the actual results, expectations,
achievements or performance may differ materially from those
anticipated and indicated by these forward looking statements.
Forward-looking statements in this news release include, but are
not limited to: the expected purchase of Lyfted, the terms of
the Asset acquisition,, the ability of the Company to secure
financing and the acquisition of appropriate licenses. Any number
of factors could cause actual results to differ materially from
these forward-looking statements as well as future results.
Although the Company believes that the expectations reflected in
forward looking statements are reasonable, it can give no
assurances that the expectations of any forward looking statements
will prove to be correct. Except as required by law, the Company
disclaims any intention and assumes no obligation to update or
revise any forward looking statements to reflect actual results,
whether as a result of new information, future events, changes in
assumptions, changes in factors affecting such forward looking
statements or otherwise.
Neither the Canadian Securities Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Canadian Securities Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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