Agricoltura
International Cannabrands Enters Into Binding LOI With BioNeva Innovations of Carson City, LLC to Acquire Cultivation in Nevada
The LOI provides that the Company will purchase all issued and outstanding units of three entities, namely, BioNeva Innovations of Carson City , LLC (" "), Sierra Superfoods, LLC (" ") and DB3 Management, LLC (" ") in exchange for the issuance of 28,805,833 shares of the Company and a vendor take-back loan with a principal amount of USD$3.25 million (the " "). The VTB Loan bears interest at the rate of 5% per annum and the principal amount is due and payable on 12/31/24. The VTB Loan is interest-free for the first two years, after which point interest will be payable quarterly through the issuance of shares of the Company at an issue price equal to the volume-weighted average trading price of the ICI shares for the 20 trading days prior to each quarterly interest payment date.
BioNeva is a cannabis cultivator located in Carson City, Nevada . BioNeva is fully operational and requires no additional capital for buildout. The facility is currently growing product and is expected to begin producing revenue towards the end of Q2 2020. The projected yield of the BioNeva facility is approximately 44kg (100 pounds) per month. BioNeva currently holds cultivation facility licenses for both medical and recreational marijuana issued by the State of Nevada . Its cultivation operations are conducted in an 8,250 ft cannabis greenhouse facility situated on 2.03 acres of leased land near Carson City, NV. The greenhouse flowering canopy is 4,000 ft and incorporates a highly efficient greenhouse roof glazing material, as well as auxiliary lighting systems that require minimal power consumption. The facility is currently managed by DB3. Sierra holds the hard assets and equipment associated with the BioNeva cultivation facility. DB3 currently manages the cultivation facility at Carson City as well as another unrelated cultivation facility under development in Washoe County, NV. DB3 derives revenue from its management of the Washoe facility of a minimum of USD$15,000 per month (with potential for 30% of net profits). The Washoe facility has been designed in a 20,000 ft greenhouse facility with the capacity for approximately 148kg (325 lbs) per month. The Washoe facility is still under construction but is expected to be operational in Q4 of 2020 and generating revenue by Q1 of 2021.
The LOI also provides for the following conditions:
Closing of the acquisition is expected to occur on or before February 29, 2020 .
While the acquisition does not constitute a related party transaction for the purposes of Multilateral Instrument 61-101 , Bob Yosaitis , a director of the Company holds a 25.3% interest in the units of BioNeva, a 25.3% interest in Sierra and a 40% interest in DB3. Mr. Yosaitis abstained from voting in connection with the approval of the transactions.
Bob Yosaitis , a director of the Company and a holder of BioNeva, Sierra and DB3, added: "
Dan Larkin , a principal of BioNeva, Sierra and DB3 commented: " ."
Steve Gormley , concluded: .
International Cannabrands is a CBD and cannabis-focused brand portfolio, leveraging the potential of the plant by offering best of breed products that naturally complement today's consumer lifestyles. The Company's mission is to build and market a diversified portfolio of cannabis and CBD brands, with strategic manufacturing and distribution partnerships to support better EBITDA and margins. ICI markets products with THC content where that practice has been legalized at the state level through either medicinal or recreational use. ICI also markets products containing CBD in the US and internationally. The Company believes as the legal cannabis and CBD markets evolve, high-quality, unique products will increasingly capture market share and provide a valuable platform for growth.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Steve Gormley
Chief Executive Officer
International Cannabrands, Ltd.
12655 W Jefferson Blvd
Los Angeles, CA , 90066
Ph: +1-(323)-828-4321 or steve.gormley@intlcannabrands.com
Dave Burwell
Vice President
The Howard Group
#350, 318 - 11 Avenue SE
Calgary, AB T2G 0Y2
Ph: +1-(403)-221-0915 or dave@howardgroupinc.com
media@intlcannabrands.com