AgriCann's Latest Acquisition Enables Processing Of Other Producers' Flower And More

AgriCann Solutions Corp. has completed the acquisition of 100% of Newline Ventures Inc., the subject of the letter of intent dated February 17, 2023, the unanimous approval by votes cast at AgriCann's April 17, 2023, held AGM and the definitive share exchange agreement announced in July.

What Happened

In return, AgriCann paid $165,000 in certified funds and issued a total of 38,619,511 common shares at $0.10 per share, including 37,825,182 shares that were issued pursuant to the SEA with Newline and 794,329 shares issued pursuant to a finder's fee agreement to an independent consultant of the company.

Newline shareholders committed 11,347,555 consideration shares to the establishment of AgriCann's new LTIP Awards program, in which key members of AgriCann's executive team will participate, subject to the terms of 36-month escrow and overlying pooling agreements that include specific performance criteria.

Why It Matters

The acquisition of Newline expands AgriCann's strategic initiatives and business model, focusing on launching innovative flower products through agreements with cannabis cultivators throughout Canada.

Some of the key benefits include the following:

• Newline is approved by Health Canada with a medical sales, micro processing, and micro-cultivation license.
• The Newline facility was built to the specifications of a standard cultivator and standard processor, and an application has been made to amend NewLine's license stack from micro to standard.
• Facilitates AgriCann's ability to take advantage of British Columbia's recently passed legislation permitting direct delivery of products to retail dispensaries through establishing a wholesale platform that connects craft cultivators with our network of retailers.
• Enables AgriCann to sell fresh and dried cannabis to registered patients and provincial/territorial authorized distributors/retailers;
• Adds the ability to process cannabis flower sourced from other licensed producers and process dried flower and/or pre-roll product SKUs.

Meanwhile, the acquisition comes on the heels of AgriCann's closing of the non-brokered private placement under which it issued 10,342,361 of its units at $0.10 per unit, for aggregate gross proceeds of $1,034,236.

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