AgraFlora Organics to Sell up to 100,000 Kilograms of Dried Cannabis Flower to ICC International Cannabis Corp.
VANCOUVER, May 22, 2019 /CNW/ - AgraFlora Organics International Inc. ("AgraFlora" or the "Company") (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a growth oriented and diversified international cannabis company, is pleased to announce that it has entered into a five year commercial rights and off-take agreement with ICC International Cannabis Corp. ("ICC") (CSE: WRLD.U) (Frankfurt: 8K51) (OTCPK: WLDCF). Under the terms of the agreement, AgraFlora will sell up to 100,000 kg of premium dried cannabis flower produced from its Delta Greenhouse Complex to ICC over the next five years, subject to approval of the Company's cultivation and sales licenses by Health Canada. This is the second major supply agreement contracted with AgraFlora, the first being with Namaste Technologies Inc. announced on December 13, 2018 for up to 25,000 kg of premium dried cannabis flower annually.
"Our major supply agreement with ICC is another endorsement of our Company's path to cannabis production and is indicative of the shear size and scale of our, soon to be, licenced growing operations in Delta, BC," said Brandon Boddy, Chairman and Chief Executive Officer, AgraFlora Organics International Ltd. "We are confident that the ongoing Delta Greenhouse Complex retrofit and subsequent license awards from Health Canada will enable us to convincingly supply ICC and Namaste Technologies with ultra premium cannabis, all while accelerating our mutually beneficial global stratagems. I am confident in communicating to the marketplace that we will continue to secure commercial agreements that will add operational certainty and crystalize material long-term cash flows."
AgraFlora's Delta Greenhouse Complex is widely considered to be one of the most technically-advanced and environmentally-friendly greenhouse operations in the World, which boasts industry leading cultivation infrastructure including:
- Fully integrated on-site natural gas-powered power plant:
- Providing ample heat and electricity, while repurposing carbon dioxide emissions to benefit the plants;
- Proprietary energy efficient air exchange;
- Advanced climate and humidity control management infrastructure;
- Ebb and flow watering systems to enhance complete irrigation recapture and water treatment;
- 1.5-million-gallon hot water storage tank configured to store energy produced during the day, for redistribution during non-peak hours, thereby increasing operational efficiencies and reducing associated energy costs; and,
- Multistage supplemental lighting augmented by natural sunlight to foster an optimized illumination equilibrium.
Boasting 2.1 million square feet of grow space under glass, AgraFlora and its Joint Venture partner have been collaborating with Health Canada since June 2018 to prepare the large-scale, ready-made Delta Greenhouse Complex for licensing. As a result of this commercial rights and off-take agreement, AgraFlora has committed to allocating 10 per cent of the Delta Greenhouse Complex's cumulative flower footprint to ICC.
Subject to the terms of the commercial rights and off-take agreement, AgraFlora may sell up to 20,000 kg of dried cannabis per annum for a 5-year term from its large-scale Delta Greenhouse Complex, representing 100,000,000 grams over the duration of the initial term.
The aforementioned commercial rights and off-take agreements are contingent on AgraFlora's receiving its cultivation and sales licences from Health Canada for its Delta Greenhouse Complex operations.
A finder's fee is payable on this transaction.
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
Brandon Boddy
Chairman & 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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