Vancouver, British Columbia–(Newsfile Corp. – October 13, 2020) – AgriCann Solutions Corp. (the “Company“, “AgriCann” or “ASC“) is pleased to announce entering into a binding Letter of Intent (“LOI“) and Loan Agreement (“CLA“) with Sticky Leaf Cannabis (“SLCC“).
The general terms and conditions of the LOI and CLA include the following:
- ASC will advance on a demand basis to SLCC funding for up to an initial $50,000 with an 8% coupon for up to one year, as a line of credit facility (“LOC“);
- Personal guarantees will be provided from SLCC principals for the entire LOC;
- SLCC will grant ASC a one year irrevocable Option for ASC to acquire 100% of SLCC for shares in ASC;
- SLCC will operate each existing licenced Cannabis Retail Store (“CRS”) and continue to advance additional CRS applications to achieve commercial success and increase market share;
- SLCC principals will organize SLCC to facilitate its transfer to ASC as a wholly owned subsidiary;
- SLCC’s valuation upon Option exercise by ASC will be based on SLCC’s trailing 12 months’ sales, requiring minimum average gross profit and balance sheet parameters.
- Upon successful acquisition of SLCC by ASC, ASC will issue one share of ASC valued at $0.50 per share for each $0.50 of retail sales, such that the business is effectively acquired at 1x sales.
- SLCC becomes a wholly owned subsidiary of ASC accounted for as a share purchase transaction.
AgriCann’s CEO Rob van Santen comments: “This month marks the two-year anniversary of cannabis legalization in Canada. On September 20, 2020 the BC government announced a new cannabis sales program designed to benefit thousands of craft farmers and Indigenous businesses for non- medicinal/recreational distribution. Coupled with our pending acquisition of Craft Nurseries Canada (see our June 3, 2020 news release) and our use of plant tissue culture to supply clonally reproduced crops to craft farms, today’s agreement advances our vision to facilitate and support high quality BC craft and micro producers’ entry into the legal market as micro-cultivation and processing regulations open.”
About Sticky Leaf Cannabis
SLCC received its initial CRS Licence and commenced retail sales in April 2019 at its Creston location, and is currently expanding with stores in Okanagan Falls and Westbank, BC. The BC government’s new cannabis sales program provides licensed small-scale producers and nurseries in BC the option of delivering cannabis directly to licensed retailers like Sticky Leaf, providing consumers access to a wide variety of coveted premium artisanal cannabis, particularly at a time when quality product is in increasing demand.
About AgriCann Solutions Corp.
The Company is a “Reporting Issuer” that originated as one of three spinouts upon completion of a statutory plan of arrangement completed by The Valens Company (formerly Valens GroWorks Corp.) on March 12, 2015. The Company seeks to acquire a suitable business opportunity with potential for scalable near-term cash flow and sustainable growth to create shareholder value.
ON BEHALF OF AGRICANN SOLUTIONS CORP.
(signed) “Rob van Santen”
CEO & Director
For further information, please contact:
Robert van Santen, CA, CPA, CMT
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law. The Company will provide further updates respecting these initiatives as developments occur. There can be no assurance that interests in any or all of these or additional projects being pursued will be acquired, funded and/or commercialized.
AgriCann Solutions Corp.
400-1771 Robson Street, Vancouver, BC, Canada V6G 1C9
Tel. +1.604.608.1999 ~ Fax. +1.778.379.9990
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65863