“A tremendous effort by the TransCanna team on closing arguably the largest vertically integrated cannabis focused facility in California,” stated Jim Pakulis, CEO of TransCanna. “Simultaneous to putting our efforts into purchasing the facility, we’ve been searching extensively for the key individuals who will be overseeing the day to day operations. We’ve made great strides over the past several weeks and should be able to start making announcements by the end of the month.”
The total purchase price for the Property was US$15 million. The Company’s CEO paid the seller a US$250,000 non-refundable deposit to secure the property, which has since been reimbursed by the Company, and the Company will pay an US$8 million down payment from the proceeds of the Company’s over-subscribed brokered private placement once closed (see news releases dated February 20, 2019 and March 14, 2019). In consideration of the issuance of 500,000 common shares of the Company, the seller of the building agreed to a carry back note of US$6.750 million at 7% p.a. interest only for up to thirteen months, with an initial maturity date of October 15, 2019, subject to a six-month extension. See March 20th press release for additional terms.
The Company has also issued to the seller 1,200,000 share purchase warrants exercisable to acquire a common share of the Company at an exercise price of $2.60 per share until April 15, 2024, vesting in equal quarterly portions over a 12-month period commencing on February 21, 2019, notwithstanding the warrants were issued today.
Additionally, a success fee of up to 2,000,000 common shares was paid to Haywood Securities Inc. in consideration of financial advisory services being provided to the Company in connection with the facility acquisition.
All of the securities issuable to the seller or Haywood Securities Inc. in connection with the facility acquisition are subject to a four month hold period ending on August 16, 2019 as well as applicable restrictions under U.S. securities laws.
For further information, please visit the Company’s website at www.transcanna.com.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a Canadian-based company focused on providing integrated branding, transportation and distribution services, through its wholly-owned California subsidiaries, to a range of industries including the cannabis marketplace.
On behalf of the Board of Directors
Chief Executive Officer
Telephone: (604) 609-6199
The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Forward-looking statements in this news release include, but are not limited to: the anticipated timing of the closing of the facility acquisition and the use of proceeds from the financing. Any number of factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although the Company believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.