Vancouver, British Columbia--(Newsfile Corp. - May 17, 2021) - AgriCann Solutions Corp. (the "Company", "AgriCann" or "ASC") is pleased to announce a private placement offering of 5,000 $100.00 Convertible Debentures (collectively the "CDs") for proceeds of $500,000, expected to close May 24, 2021.
Proceeds will be primarily used to fund the expansion of Sticky Leaf Cannabis ("SLCC") through the existing line of credit facility ("LOC") (see our October 14, 2020 news release) and for working capital purposes.
Corporate update
The Company recently completed its funding commitment to Craft Nurseries Canada ("CNC") under the $600,000 Convertible Loan Agreement ("CLA") (see our June 3, 2020 news release). CNC completed its initial build-out of two gutter-connect greenhouses totaling 3,600 sq ft with the recently approved and completed addition of an epoxy-sealed concrete foundation. Health Canada's Controlled Substances and Cannabis Branch has presented its CNC file to a panel for a Cannabis Nursery Licence recommendation.
CNC's focus is on the supply end of the cannabis industry, developing genetics (both cannabis and hemp) to produce seedlings and clones, specializing in medicinal high-CBD as well as THC strains. CNC is specifically targeting the supply and sale of superior starter plant materials (seedlings and clones) directly to a relatively starved niche market of licensed growers whose primary focus is growing to flower stage, as well as licensed retail store outlets, cultivators, other nurseries, processors, analytical testers, researchers and cannabis drug licence holders.
SLCC currently operates two licenced Cannabis Retail Stores ("CRS") in popular BC tourist and recreation towns, with additional locations and CRS applications in progress. With ASC's financial support, SLCC is strategically positioning ahead of BC's proposed rules allowing farm-gate or farm-to-gate sales for craft cannabis farmers. The province currently allows similar sales for some breweries, wineries and micro distilleries. A click-and-collect website and delivery service is expected to integrate and enhance the system.
Current BC rules say that a licensee is required to purchase their non-medical cannabis supply directly from the BC Liquor Distribution Branch (LDB) and that they are not permitted to purchase any cannabis products directly from a federally licensed producer. Mike Farnworth, the province's point man on cannabis policy, told the media last October: "I see farm-gate as an important component of it. We're not there yet, but I fully expect that we'll get to a point where you will be able to see farm-gate sales." Although the details are not finalized, the government also expects to begin a direct delivery program that will allow "small-scale" cannabis producers to sell directly to retailers in 2022. Small-scale is not limited to micro licenses and will also apply to cannabis nurseries.
Private placement offering of CDs
The CDs are convertible for twelve months into $0.25 Units at no additional cost to the holder. Each Unit consists of one (1) common share (a "Share") in the capital of AgriCann and one-half of a share purchase warrant (a "Warrant"). Each full Warrant will entitle the holder to purchase one (1) additional Share (a "Warrant Share") for $0.50 at any time for twenty-four (24) months, at which time the Warrants will expire.
Should the Company's Shares have a closing price equal to or higher than $1.00 per Share for ten (10) consecutive trading days on a recognized stock exchange, the Company shall be entitled to give notice to the holders of Warrants by news release, that the Warrants will expire 30 days after the date of such news release unless exercised before the expiry of that period, and in such event all unexercised Warrants will expire on the last day of such 30 day period.
The Company will pay the holder of each CD interest on the principal amount outstanding from time to time to the date that the Convertible Debenture remains outstanding (the "Term") 5% of the principal amount, payable at the option of the holder in cash or in Shares to be accrued while the CD is outstanding until the Maturity Date, at which time the Company will also pay the holder the principal amount of the CD then outstanding unless otherwise converted by the holder.
It is anticipated that insiders will participate directly or indirectly in subscribing for these CDs to expedite a full and timely close.
About AgriCann Solutions Corp.
The Company is a "Reporting Issuer" that originated as one of three spinouts upon completion of a statutory plan of arrangement completed by The Valens Company (formerly Valens GroWorks Corp.) on March 12, 2015. The Company seeks to strategically acquire suitable business opportunities with potential for scalable near-term cash flow and sustainable growth to create shareholder value.
ON BEHALF OF AGRICANN SOLUTIONS CORP.
(signed) "Rob van Santen"
CEO & Director
For further information, please contact:
Robert van Santen, CA, CPA, CMT
Telephone: +1.604.608.1999
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law. The Company will provide further updates respecting these initiatives as developments occur. There can be no assurance that interests in any or all of these or additional projects being pursued will be acquired, funded and/or commercialized.
AgriCann Solutions Corp.
400-1771 Robson Street, Vancouver, BC, Canada V6G 1C9
Tel. +1.604.608.1999 ~ Fax. +1.778.379.9990
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/84368
