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() has signed an agreement to acquire Supra THC Services Inc. ("Supra THC") from Canadian Cannabis Company, owned by Valens GroWorks Corp ().
Supra THC operates under a dealer license issued by Health Canada under the Narcotic Control Regulations of the Controlled Drugs and Substances Act (Canada).
In accordance with the new cannabis law and cannabis regulation, Supra THC's concession license allows for standard processing, badytical testing, research, production, sales and distribution. In addition to these permitted uses, RotoGro will request a license amendment to allow standard cultivation.
As part of this agreement, Valens will receive a total consideration of C $ 11 million on four milestones, of which 80% will be paid through RotoGro shares and 20% in cash.
To date, Supra THC's activities include the following income generating activities:
• Scientific research and development of products and services related to the cannabis industry for medical purposes;
• Providing a superior range of products with a level of measurable excellence; and
• Free treatment for authorized producers (which includes the use of a proprietary process that generates 100% cannabis oil without the addition of solvent).
Downstream value-added products and services
Michael Carli, Managing Director of RotoGro, said, "The acquisition of Supra THC is a significant step forward in the company's strategic growth plan, which aims to become a world leader in growing cannabis and perishable foods. .
"In addition to engaging in a dialogue with Health Canada, we have identified the premises on which we wish to establish our cannabis facilities (located near our current facility in Caledon, Ontario) and the design of the facilities for these premises has been completed. already started. "
"We have excellent working relationships with the Valens management team."
"We look forward to our future commercial collaboration for underwriting agreements and downstream value-added products and services."
Supporters Wearing Canadian-Style Flags at the Global Marijuana March in Toronto
More than 25 countries have legalized the medical use of cannabis or the decriminalized possession of small amounts.
Canada was a pioneer in this movement, its initial legalization having been adopted in 2001.
It is anticipated that legalization of cannabis recreational use nationally in Canada on October 17, 2018 will result in accelerated growth of this nascent industry.
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