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VANCOUVER, April 29, 2019 /CNW/ - AgraFlora Organics International Inc. ("AgraFlora" or the "Company") (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a growth oriented and diversified international cannabis company, announces that, further to its news releases of March 20, 2019 and March 25, 2019, it has completed various share issuances to certain parties as detailed out below.
Propagation Services Canada Inc. ("PSC"):
A total of 20,588,235 Shares were issued pursuant to a share purchase agreement with PSC and the shareholders of PSC (the "PSC Shareholders") dated effective March 19, 2019 (the "Agreement"). Pursuant to the Agreement, the Company acquired 10% of the outstanding Class B non-voting participating common shares of PSC (the "PSC Shares") from the PSC Shareholders for $14,000,000, payable by the issuance of 20,588,235 Shares of the Company at a price of $0.68 per Share.
Consulting Services:
The Company issued an aggregate of 10,000,000 Shares at a deemed price of $0.51 per Share to key personnel, including related parties, who are assisting with PSC and the 2.2 million square foot greenhouse project located in Delta, British Columbia (the "Delta Facility") which was announced on June 29, 2018.
Letter of Intent:
Pursuant to a letter of intent dated May 22, 2018, the Company has issued the first allotment of 1,250,000 Shares to Cornelius Houwelings (the "Consultant") at a deemed price of $0.51 per Share. As set out in the LOI, the Company agreed to issue an aggregate of 5,000,000 Shares to the Consultant with the remaining 3,750,000 Shares to be issued as follows:
Date of Issuance |
No. of Shares |
June 25, 2019 |
1,250,000 |
September 25, 2019 |
1,250,000 |
December 25, 2019 |
1,250,000 |
Total: |
3,750,000 |
The Company has also agreed to issue the Consultant an additional 5,000,000 Shares upon the achievement of the Delta Facility becoming 100% operational in cannabis.
Supply Agreement:
The Company also issued 281,690 Shares at a deemed price of $0.71 per Share to Vendure Genetics Labs Inc. (the "Supplier") pursuant to a supply agreement dated December 26, 2018, whereby the Company agreed to purchase certain plants, plant matter and related plant-based products from the Supplier for total consideration of $200,000, payable in Shares.
All Shares issued are subject to a statutory four-month hold period.
About Delta Organic Cannabis Corp.
DOCC is Canadian focused vertically integrated cannabis company formed by some of the most successful early-movers in the space.
About Propagation Services Canada Inc.
Propagation Services Canada is a joint venture company focused on the cannabis flower and propagation market in Canada. Its Delta Greenhouse Complex covers approximately 2.2 million square feet and is one of the most technologically advanced greenhouses in North America, with an experience staff, full propagation services, advanced HVAC, lighting and water systems and its own 8.8 MW powerplant.
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London, ON and is a joint venture partner in Propagation Service Canada and its large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The Company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry. For more information please visit: www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Derek Ivany
President & CEO
No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
SOURCE AgraFlora Organics International Inc.
AgraFlora Organics International Inc.: Tim McNulty, E: [email protected], T: (800) 783-6056; For French inquiries: Remy Scalabrini, Maricom Inc., E: [email protected], T: (888) 585-MARI
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