MedReleaf (TSX:LEAF) announced the completion of an agreement for the acquisition of a 1 million square feet of existing greenhouse infrastructure on a69-acre property in Exeter, Ontario and 95 acres of adjacent land.
As quoted in the press release:
The total purchase price for the transaction is approximately $26 million, consisting of $21.5 million in cash and 225,083 common shares of MedReleaf.
“MedReleaf is advancing on all fronts through focused capacity expansion, innovative brand and product development, and significant supply agreements that reinforce our position as one of the leading producers of premium cannabis to the Canadian adult-use and global medical markets,” said Neil Closner, CEO of MedReleaf. “The Exeter Facility expansion will add timely capacity to support market share leadership in our target segments while maximizing long-term return on invested capital.”
Work to retrofit the Exeter Facility for cannabis production will begin in April with first harvest expected in the first quarter of 2019, subject to receipt of a licence from Health Canada. MedReleaf is fully funded to complete the project with cash on hand. The Exeter Facility, after full retrofit, will have annual production capacity of up to 105,000 kilograms, increasing MedReleaf’s fully funded annual production capacity to 140,000 kilograms.