AgraFlora Organics Bolsters European Supply Agreement; Receives C$2,000,000 Cash Infusion
September 27 2019 - 3:05AM
AgraFlora Organics International Inc.
(“
AgraFlora” or the “
Company”)
(
CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF),
a growth oriented and diversified international cannabis company,
is pleased to announce that further to a commercial rights and
supply agreement (the “Agreement”), dated May 22, 2019, the Company
has entered into a complementary cooperation agreement (the “Co-Op
Agreement”).
Under the terms of the Co-Op Agreement, a party to the original
Agreement has subscribed to a non-brokered private placement (the
“Offering”) at a 28.2 per-cent premium to AgraFlora’s five day VWAP
of C$0.234; for total proceeds of C$2,000,000. In consideration for
the Offering, AgraFlora has agreed to defer payment (the “Deferred
Payments”) for the initial C$2,000,000 purchase of dried cannabis
flower, under the previously announced Agreement. Such Deferred
Payments shall be repaid in equal portions of C$250,000 across the
subsequent C$8,000,000 in anticipated dried cannabis flower
purchases.
In connection with the Offering, the Company has issued
6,666,667 transferable special warrants (the “Special Warrants”) to
one purchaser at a price of C$0.30 per Special Warrant. Each
Special Warrant is convertible into units (the “Units”) with each
Unit consisting of one common share (the “Shares”) of the Company
and one transferable common share purchase warrant (the
“Warrants”), with each Warrant entitling the holder thereof to
purchase one additional Share of the Company at a price of C$0.50
per Share for a period of 36 months from the date of issuance of
the Warrants.
All securities issued are subject to a four-month hold period
pursuant to applicable securities laws of Canada, after which time
the Special Warrants are convertible into the Units.
The European medical cannabis cannabinoid-derived CPG markets
continue to mature, thus affording qualified market participants to
achieve robust margins via the distribution of premium cannabis
flower and associated derivative products. The Agreement affords
AgraFlora’s commercial partners with a consistent supply of
high-grade cannabis flower, permitting the continued penetration of
high-value EU patient populations.
The aforementioned Agreements are contingent on AgraFlora's
receipt of a standard cultivation and accompanying sales licences
from Health Canada for its flagship Delta Greenhouse Complex.
AgraFlora's Delta Greenhouse Complex is widely considered to be one
of the most technically advanced and environmentally friendly
greenhouse operations in the world, equipped with industry-leading
cultivation infrastructure.
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and
diversified company focused on the international cannabis industry.
It owns an indoor cultivation operation in London, ON and is a
joint venture partner in Propagation Service Canada and its
large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The
Company is also retrofitting a 51,500-square-foot good
manufacturing practice (“GMP”) edibles manufacturing facility in
Winnipeg, Manitoba. AgraFlora has a successful record of creating
shareholder value and is actively pursuing other opportunities
within the cannabis industry. For more information please visit:
www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Brandon Boddy Chairman & CEOT: (604) 398-3147
For additional information:AgraFlora Organics International
Inc. Tim McNultyE: ir@agraflora.com T: (800) 783-6056 |
For French inquiries: Remy Scalabrini, Maricom Inc.E:
rs@maricom.ca T: (888) 585-MARI |
The CSE and Information Service Provider have
not reviewed and does not accept responsibility for the accuracy or
adequacy of this release.
Forward-looking Information Cautionary
Statement
Except for statements of historic fact, this
news release contains certain "forward-looking information" within
the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are
based on the opinions and estimates at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking statements
including, but not limited to delays or uncertainties with
regulatory approvals, including that of the CSE. There are
uncertainties inherent in forward-looking information, including
factors beyond the Company’s control. There are no assurances that
the business plans for AgraFlora Organics described in this news
release will come into effect on the terms or time frame described
herein. The Company undertakes no obligation to update
forward-looking information if circumstances or management's
estimates or opinions should change except as required by law. The
reader is cautioned not to place undue reliance on forward-looking
statements. Additional information identifying risks and
uncertainties that could affect financial results is contained in
the Company’s filings with Canadian securities regulators, which
are available at www.sedar.com.
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