Auxly Cannabis Group announced a definitive investment agreement with Curative Cannabis to acquire 46 percent of the company and secure a purchase and sale agreement to fund a facility in Ontario.
Auxly Cannabis Group (TSXV:XLY) announced a definitive investment agreement with Curative Cannabis to acquire 46 percent of the company and secure a purchase and sale agreement to fund a facility in Ontario.
As quoted in the press release:
The Facility is designed as a purpose-built indoor facility for the production of ultra-premium cannabis product. With an initial footprint spanning approximately 30,000 square feet, the first phase of the Facility is expected to yield approximately 2,900 [kilograms] of cannabis per annum. Curative anticipates bringing a unique ultra-premium cannabis product to Canadian recreational cannabis consumers through its proprietary genetics database of over 90 stable, and highly sought-after, cannabis strains (the “Genetic Library“).
The first phase of the Facility, being built to EU GMP standards, is currently under construction with an anticipated completion and Health Canada evidence package submission date of March 2019. Curative’s Facility rests on a 33-acre land parcel thereby providing ample room for Facility expansion. Curative has already received municipal approval for the expansion of the Facility for up to an additional 120,000 square feet of indoor cultivation space.
Pursuant to the Transaction, the Company has entered into a share purchase agreement with certain shareholders of Curative, whereby the Company has agreed to purchase 46 [percent] of the common shares of Curative from certain Curative shareholders, in exchange for the issuance of 5,056,026 common shares of the Company (the “Consideration Shares”). The Company will also enter into a long-term cannabis purchase and sale agreement with Curative, pursuant to which the Company will fund the construction and development costs of the Facility in exchange for the right to purchase 50 [percent] of the cannabis products and cannabis trim produced at the Facility at an offtake price equal to Curative’s direct cost of cultivation plus 10 [percent].