MedReleaf (TSX:LEAF) announced its intentions to acquire an existing 1 million square feet greenhouse facility in Exeter, Ontario and 95 acres of adjacent land for a price of $21.5 million in cash and 225,083 common shares of their stock.
As quoted in the press release:
The existing Exeter Facility, after retrofitting, will have production capacity of up to 105,000 kilograms of cannabis product annually with a first harvest anticipated by the end of 2018, subject to receipt of a license from Health Canada.
“The addition of greenhouse production in concert with our two best-in-class indoor cultivation facilities will allow us to more rapidly expand capacity and to address the growing need for raw material inputs for extract and other non-flower related products from our premium and exclusive varieties. We also continue to scale our indoor production of high quality, award-winning, premium dried flower in order to serve the recreational and global medical markets,” said Neil Closner, CEO of MedReleaf.
Under the terms of the Agreements, MedReleaf will acquire 1 million square feet of existing greenhouse infrastructure situated on a 69 acre property in Exeter, Ontario and an additional 95 acres of undeveloped adjacent land. The value of the Agreements is approximately $26 million, consisting of $21.5 million in cash and 225,083 MedReleaf shares. The issuance of the MedReleaf shares remains subject to the approval of the TSX.