AgraFlora Closes Issuance of Over 30 Million Shares

AgraFlora Organics
Credit: AgraFlora Organics

AgraFlora Organics International (CSE: AGRA) (OTCPK: PUFXF) announced that it has completed various share issuances to certain parties.

Story continues below

Under a share purchase agreement with Propagation Services Canada, AgraFlora issued a total of 20,588,235 shares. Under the agreement, the company acquired 10% of the outstanding class B non-voting participating common shares of PSC from for C$14 million, payable by the issuance of 20,588,235 shares of the company at a price of C$0.68 per share.

Relating to consulting services, the company issued an aggregate of 10,000,000 shares at a deemed price of C$0.51 per share to key personnel, including related parties, who are assisting with PSC and the 2.2 million square foot greenhouse project located in Delta, British Columbia.

Under a letter of intent, AgraFlora issued the first allotment of 1,250,000 shares to Cornelius Houwelings at a deemed price of C$0.51 per share. Also, the company agreed to issue an aggregate of 5,000,000 shares to the consultant with the remaining 3,750,000 shares to be issued during this year.

Further, the company also agreed to issue the consultant an additional 5,000,000 shares upon the achievement of the Delta Facility becoming 100% operational in cannabis.

Meanwhile, AgraFlora issued 281,690 shares at a deemed price of $0.71 per share to Vendure Genetics Labs under a supply agreement dated December 26, 2018, whereby the company agreed to purchase certain plants, plant matter and related plant-based products from the supplier for total consideration of C$200,000, payable in shares.

All shares issued are subject to a statutory four-month hold period, according to AgraFlora.

An ad to help with our costs