PacRoots
Announces
Share Purchase Agreement for 250 Acres
in the Fraser
Valley, British
Columbia
The
Acreage Sits Outside
the Agricultural Land Reserve with No Zoning
Restrictions
VANCOUVER,
British
Columbia,
Canada -- July 21, 2020 -- InvestorsHub NewsWire
-- Pac Roots
Cannabis Corp.
("PacRoots"
or the "Company") (CSE: PACR), is
pleased to announce the execution of a share purchase agreement
with 1088070 BC.
LTD., a
company existing under the laws of the Canada
("1088")
and
Dave
Jonkman
and
Norm Tapp
(together, the
"1088
Shareholders" and each, a
"1088
Shareholder") pursuant to which the Company
would acquire all of the issued and outstanding shares of
1088. 1088
owns and controls nine parcels of land comprised of
250 acres of prestigious land in the Fraser Valley Region of
British Columbia.
"The
addition
of
such
a substantial package of land
to our
portfolio
is a major step for
PacRoots.
We
are pleased to have the opportunity to add significant acreage with
an acquisitional cost base of $9,600 per acre. This land has no
zoning restrictions and is not situated within the Agricultural
land reserve, which provides
for
infinite development possibilities." – President and
CEO, Patrick Elliott
The
Company has entered
into a
51-day due diligence period before the closing date which is slated
for September 4, 2020. If
the Company is not satisfied with the results of its
investigations, in its sole discretion, it may determine to
terminate the share purchase agreement at any time during the due
diligence period. As
consideration for the 1088 shares, the Company will pay an
aggregate of $1.5
million in
cash and issue an aggregate of 3 million
common
shares to the 1088 Shareholders, pro rata in accordance with their
holdings as
follows:
(a)
375,000 shares to
be issued on or before the date which is 30 days from the date of
Closing (the "Closing Date");
(b)
$200,000
within three months of the Closing
Date;
(c)
$300,000 in cash
and 562,500 common shares within 12 months of the Closing
Date;
(d)
$400,000 in cash
and 937,500 common shares within 18 months of the Closing Date;
and
(e)
$600,000
and 1,125,000
common shares within 24 months after the
Closing Date.
The
acquisition of 250 acres of pristine land in the Fraser Valley
Region of British Columbia,
coupled
with an indoor facility in the late stages of permitting in
Lake
Country, B.C.,
and a
60% interest in a 100 acre Hemp JV project in Rock Creek,
B.C.,
are complementary for a portfolio of production and development
assets. A land package of this magnitude demonstrates a long
pipeline of development projects for Company. The Fraser Valley
region of British
Columbia
is
notoriously known as an agricultural and industrial hub for the
province.
The
Fraser Valley Regional District (FVRD) is one of the most
intensively farmed areas in Canada, generating the most significant
annual farm income of any regional district in British Columbia.
Despite the rapid population growth of the region, agriculture has
flourished and remains an essential component of the region's
economy.
Access
to a local market of over 2.5 million people, high-quality soils,
favorable climate, accessible water,
and
proximity to educational and research institutions makes the Fraser
Valley Regional District a center for agricultural production and
innovation today and into the future.
"Between the Fraser Valley and Rock Creek, B.C.,
which both rank at the top of the charts for outdoor agricultural
producing regions in the Country,
PacRoots
is extremely well positioned for production and future development
of Hemp and Cannabis infrastructure. We are both privileged and
proud to be involved in these exciting programs, which will
undoubtedly add accretive value to our Company and to our
shareholders."
Board of Director – Chad Clelland
The
Fraser Valley has extraordinary growing conditions for farmers.
These conditions give them the possibility to produce over 200
commercial products like cranberries, raspberries,
potatoes
and
corn that are valued both locally and internationally. The Fraser
Valley often has cooler and wetter climates than the rest of
British
Columbia.
It is
also
home to fertile soils that are optimal
for
growing certain fruits,
vegetables
and
other cash crops, including cannabis.
It has only 2.4%
of
the total land farmed in B.C.,
and 14%
of
the province's farms, but generates 38%
of
the provincial gross annual farm receipts. The economic value of
agriculture in this region is more than $3 billion a
year.
PacRoots,
through its strategic genetic licensing partner,
Phenome
One, has access to a large genetic library of suitable cultivars
for the west coast outdoor climate which have been field tested
over the past 3 years. This program has showcased some of the elite
CBD and THC strains that thrive in the wetter, milder outdoor
conditions that generated unexpectedly high yields while
demonstrating environmental resiliency.
"The lack of superior cannabis genetics, expertise and growing
conditions have been a common headline that has plagued the
industry in producing a premium product for the market. With the
partnership with Phenome One and the access to their extensive
genetic library,
PacRoots
is extremely well positioned to deliver the best in industry
quality and throughput to the consumers with a pipeline of scalable
development properties in the portfolio."
– President and
CEO, Patrick Elliott
ON BEHALF OF
PAC ROOTS CANNABIS CORP.
(signed)
"Patrick
Elliott"
Chief Executive
Officer
For further
information, please contact:
Pac Roots Cannabis
Corp.
www.pacroots.ca
Telephone:
604-609-6171
Certain
statements included in this press release constitute
forward-looking information or statements (collectively,
"forward-looking statements"), including those identified by the
expressions "anticipate", "believe", "plan", "estimate", "expect",
"intend", "may", "should" and similar expressions to the extent
they relate to the Company or its management. The forward-looking
statements are not historical facts but reflect current
expectations regarding future results or events. This press release
contains forward looking statements. These forward-looking
statements are based on current expectations and various estimates,
factors and assumptions and involve known and unknown risks,
uncertainties
and other
factors.
Statements
about the Company's proposed
acquisition of 1088 and the proposed use of the land held by 1088
as well as the Company's joint venture operations are all
forward-looking information.
Forward-looking
statements are not a
guarantee of
future performance and involve risks, uncertainties and assumptions
which are difficult to predict. Factors that could cause the actual
results to differ materially from those in forward-looking
statements include failure to obtain an industrial hemp in a timely
manner or at all, the continued availability of capital and
financing, and general economic, market or business conditions,
including the effects of COVID-19. Forward-looking statements
contained in this press release are expressly qualified by this
cautionary statement. These statements should not be read as
guarantees of future performance or results. Such statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance
or
achievements to be materially different from those implied by such
statements. Although such statements are based on management's
reasonable assumptions, there can be no assurance that the
statements will prove to be accurate or that management's
expectations or estimates of future developments, circumstances or
results will materialize. The Company assumes no responsibility to
update or revise forward-looking information to reflect new events
or circumstances unless required by law. Readers should not place
undue reliance on the Company's forward-looking
statements.
Neither the
Canadian Securities Exchange (the "CSE") nor its Regulation
Services Provider (as that term is defined in the policies of the
CSE) accepts responsibility for the adequacy or accuracy of this
release.