International medical cannabis company Akanda Corp. AKAN (WKN: A3DG83) and 1107385 B.C. LTD has entered a purchase deal for farming land and related operations and licenses.
What Happened
Akanda said on Wednesday that it plans to issue a non-refundable payment of $1.8 million which, if paid in common shares of Akanda, will be based on a formula to calculate the per-share price as outlined in the agreement.
The initial payment will be broken up into three option payments: upon signing, 15 days after signing, and 30 days after signing, respectively.
Why It Matters
The move buys Akanda the right to develop the property owned by 1107385 B.C. LTD for two years. Akanda plans to develop THC and CBD facilities at the site.
What’s Next
Additional payments will be made based on milestones achieved from the development, including THC cultivation, sales of products, CBD cultivation, and hemp cultivation.
Further payment milestones include:
- Akanda agreed to pay $500,000 to the land’s owner upon approval or a license for THC cultivation on the property from the applicable regulatory authority;
- Upon sale of THC product cultivated from the property, $500,000 will be paid;
- Upon kemp cultivation approval from the application regulatory authority, $750,000 will be paid; and
- Upon CBD cultivation approval from the application regulatory authority, $750,000 will be paid.
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AKAN Price Action
Akanda’s shares traded 11.1111% higher at $0.69 per share at the time of writing on Wednesday morning.
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Photo: Courtesy of geralt, lindsayfox Pixabay
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