Delta 9 Cannabis (TSXV:NINE) announced a binding letter of intent and a lease agreement to purchase the land buildings of its current facilities and additional terrain for future expansion.
As quoted in the press release:
The New Lease is a new five-year lease with 6599362 Canada Ltd. (the “Vendor”) for the land and building containing the Company’s current cannabis production facility (referred to as “Building E”). The New Lease also contains an option for the Company to purchase Building E for a price of $6.25 million at any time during the term of the New Lease. The Company anticipates executing this option to purchase Building E within the next few days.
The LOI provides that Delta 9 will purchase three existing warehouse buildings from the Vendor (referred to as “Buildings B, C and D”) located on approximately 40 acres adjacent to Building E for a purchase price of $6.50 million. Buildings B, C and D contain an aggregate of approximately 100,000 square feet of existing warehouse space. Delta 9 anticipates using Buildings B, C and D to expand its cannabis production facility.