Sunniva Signs Agreement To Sell Sunniva Medical For C$20 Million

ME Staff
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Sunniva Signs Agreement To Sell Sunniva Medical For C$20 Million

Sunniva Inc. (OTCMKTS:SNNVF) has announced that it has entered into a share purchase agreement with CannaPharmaRx Inc. (OTCMKTS:CPMD) dated June 11, 2019. Pursuant to the agreement Sunniva will sell Sunniva Medical Inc. in an all-cash deal to CannaPharmaRx for around C$20 million minus outstanding liabilities in SMI which includes the property mortgage.

Acquisition agreement to be closed on July 5

The net payable proceeds that CannaPharmaRx will pay Sunniva are expected to be around C$15.5 million. The agreement is expected to be closed on or around July 5, 2019, and effectiveness of the transactions is subject to closing conditions that include the completion of a financial audit of Sunniva Medical Inc. as well as receipt of considerable financing by the buyer.

Sunniva is the owner of Sunniva Cannada Campus that includes construction assets for the planned development of a 759,000 square foot greenhouse that will be located in Okanagan Falls, British Colombia on a 114-acre property.

Sunniva CEO Anthony Holler stated that the sale of Sunniva Medical is part of the company’s previous announcement of looking into its strategic alternatives for Sunniva’s operations in Canada.  The CEO added that the company is focused on advancing its California assets as well as expanding its sales and distribution networks in the states to enhance the company’s continued growth into the burgeoning market.

He further indicated that the disposition of the property in Okanagan Falls is part of the company’s strategy and more focus and capital resources are being put towards the completion of the Cathedral City facility and the current development of the company’s cannabis brands in the state of California.

CannaPharmaRx CEO Dominic Colvin stated that they were delighted to reach an agreement for the acquisition of Sunniva Medical Inc. He added that the purchase and development of the Property in Okanagan Falls in combination with the company’s Hanover, Ontario property as well as the ownership of a stake in GN ventures creates the path for CannaPharmaRx’s growth strategy of becoming a leading player in the cannabis industry in Canada.