|High / Low range:||0|
Q Investments Announces Strategic Investment in Delta Organic Cannabis Corp.
VANCOUVER, British Columbia, Dec. 07, 2018 (GLOBE NEWSWIRE)
-- Q Investments Ltd. (the “Company”)
announces that it has entered into a subscription agreement
(the “Agreement”) with Delta Organic Cannabis Corp. (“DOC”),
a privately held Toronto-based cannabis investment company,
to make a strategic investment, by way of private placement,
for $7,500,000. Under the terms of the Agreement, the
Company will acquire 7,500,000 common shares of DOC at a
price of $1.00 per common share representing approximately
37.5% of the outstanding equity of DOC.
DOC’s sole asset is an equity participation and earn-in agreement (the “Earn-In Agreement”) with CSE-listed Agraflora Organics International Inc. (“AGRA”), a growth-oriented and diversified company focused on the international cannabis industry, for the development of a large scale 2.2 million square foot commercial medical cannabis cultivation operation in Delta, British Columbia. The retrofit of the 2,200,000 square foot complex has been split into three phases: Phase 1 includes the retrofit of 350,000 square feet, including post-production facilities, completion scheduled for Q1 2019; Phase 2 includes an additional 1,450,000 square feet to be completed by Q4 2019; and the final phase consisting of 400,000 square feet. Initial activities of the retrofit include site preparation for propagation operations including 250,000 square feet of flowering area, development of standard operation procedures and completion of security audit and development of overall plan, plus ordering of long lead time items and planning with plant genetic experts in preparation for the first crop. To date DOC has advanced $12,500,000 for 27,863,775 common shares of AGRA and will advance a further $27,500,000 for an additional 61,300,305 common shares of AGRA under the terms of the Earn-In Agreement. The $7,500,000 investment by the Company will be utilized by DOC to fund the second tranche of their investment into AGRA. In addition to an equity interest in AGRA itself, DOC will receive a 20% direct interest in the facility itself. Additionally, AGRA has ownership in several cannabis companies, including AAA Heidelberg and Propagation Services Canada in Canada, a large-scale greenhouse project in Australia, and is actively pursuing other opportunities within the cannabis industry.
ON BEHALF OF THE BOARD
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
This news release contains forward looking statements. Forward looking statements are often identified by terms such as “will”, “may”, “should”, “intends”, “anticipates”, “expects”, “plans” and similar expressions. All statements other than statements of fact included in this release are forward looking statements that involve risks and uncertainties. There can be no assurance that any forward looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward looking statements contained in this news release are expressly qualified by this cautionary statement. The forward looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward looking statements as expressly required by Canadian securities laws.
GlobeNewswire, a Nasdaq company, is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.