Cannabis firm AgraFlora Organics International (OTCPK: PUFXF) and Blox Labs (OTCPK: BLLXF) have partnered to create a cannabis operations management company. The two parties have signed a letter of intent (LOI) to form the management company that will manage and operate state-of-the-art agricultural greenhouse facilities.
Under the terms of the LOI, AgraFlora and Blox Labs will negotiate a definitive agreement to form a joint venture company to build a team of professionals from the cannabis, agriculture and pharmaceutical sectors to manage and operate state-of-the-art agricultural greenhouse facilities.
BLOX intends to reach an agreement with Best Cannabis Products to acquire an 180,000-sq.-ft greenhouse facility located on 50 acres of land in Leamington, Ontario.
The LOI also includes management of the Leamington cannabis greenhouse whereby AgraFlora would receive up to 19.99% ownership, subject to the satisfaction of certain milestones, in BLOX or the “Newco” upon closing of the BCP arrangement.
Further, AgraFlora is to be named the manager of the Leamington cannabis greenhouse and will receive a management services and special warrants assuming BLOX completes its acquisition of Best Cannabis Products within the timeframe to be referenced in the agreement.
Meanwhile, AgraFlora will provide services and resources related propagation and genetics, greenhouse design and operation and large-scale cultivation to the Leamington cannabis project. In addition, the company will contribute rights relating to its existing cannabis operations and non-exclusive brands currently being sold in Canada.
“What impressed me the most with the Leamington project was the size of potential expansion of up to 1,000,000 sq. ft. of growing area,” Derek Ivany, the CEO of AgraFlora Organics International, said in a press statement.
“As our industry matures it will be those companies with large and efficient operations who succeed. Our management and operating team overseeing the retrofit of a former tomato greenhouse complex in Delta, BC, has many years’ experience operating high tech greenhouses. The Delta Greenhouse Complex will be one of the most efficient greenhouses in the country with advanced technology operating HVAC, water and lighting, its own natural gas co-gen energy plant and prime location in Delta, BC. We will take a similar approach to the Leamington greenhouse and other potential projects. I look forward working with Jeff and his team as we finalize a definitive agreement and begin building the management team for the conversion at Leamington,” Ivany said.