PUF Ventures, an advanced Access to Cannabis for Medical Purposes Regulations license applicant, and Delta Organic Cannabis, a privately held Toronto-based cannabis investment company, signed an Equity Participation and Earn-In Agreement which provides for up to $40 million in investment at a price of $2.24 per PUF share for the development of a large-scale, commercial medical cannabis cultivation operation in Delta, British Columbia. The proceeds of the subscriptions shall be used exclusively to develop the Delta propagation facility consisting of 2,200,000 sq. feet of illuminated greenhouse space and 1,700,000 sq. feet of "ebb and flood" irrigation space. This is an arm's length transaction and no finder's fees are to be paid.
Derek Ivany, President & CEO of PUF, commented: "On behalf of our entire team, I am extremely pleased to announce the achievement of this marquee milestone for PUF. We have constantly strived to deliver shareholder value and I believe this significant financial commitment in support of our state-of-the-art greenhouse project in British Columbia demonstrates the tremendous value of this endeavour. In comparison to other existing large-scale cannabis cultivation facilities, the finalization of this project catapults PUF into the upper echelon of participants in the space."
Mr. Ivany continued, "This sizeable financial commitment will provide enough capital to allow us to focus the majority of our strategy on high quality cannabis flowering while also still advancing the propagation service aspect of our business thus creating a more diversified revenue mix."
Christopher MacIntyre, President of DOCC, stated: "PUF has secured one of the largest existing greenhouses in Canada. With over $75 million already invested into the Delta facility, advanced growing technologies, access to power, and incredible personnel, the retrofit to cannabis production and licensing is anticipated to be swift."
He continued, "We are also very pleased to be entering this joint venture as a shareholder of PUF. The fact that we will be acquiring PUF equity at over $2 per share reflects the excellent and exciting suite of assets that the company has assembled over the past year."
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