AgraFlora Organics International (OTCPK: PUFXF) announced that it acquired a 100% stake in the London, Ontario-based licensed cannabis producer AAA Heidelberg.
The company has issued around 12.22 million common shares at $0.1667 per share to the shareholders of AAA Heidelberg as part of the deal.
Following the completion of the share transfer, AAA Heidelberg becomes a wholly owned subsidiary of AgraFlora.
“This acquisition marks a very important milestone in AgraFlora’s growth initiative and designation as an official licensed cannabis production company,” AgraFlora CEO Derek Ivany said in a press statement. “This, combined with the company’s 2,200,000 square foot Delta Greenhouse facility places AgraFlora among the largest potential per square footage cannabis producers in Canada and we are focused on brining both facilities into revenue generating production in 2019.”
Currently, AAA Heidelberg is working with Canopy Growth (NYSE:CGC) to initiate the first crop of high quality medical cannabis at the London, Ontario based facility.
The company is retrofitting its existing 2,200,000 sq. ft. greenhouse complex in Delta, a city in British Columbia, and operations are currently on schedule to complete 250,000 sq. ft. of flowering area by the end of the second quarter of 2019.
AgraFlora intends to complete the total of 1,700,000 sq. ft. of flowering area by the end of 2019 and the final phase of the greenhouse retrofit is planned to include an additional 450,000 sq. ft. of flowering area scheduled for completion in the summer of 2020.