Cannara Biotech Inc. Completes Acquisition of TGOD’s State-of-the-art Cultivation and Manufacturing Facility in Valleyfield, Quebec

CANNANNEW REPORT

Newly built fully automated one million sq. ft. facility increases Company’s production capacity of premium-grade cannabis up to 125,000 kg annually   MONTREAL, June 23, 2021 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative products with one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec, today announced that it has closed its previously-announced acquisition of the one million square foot licensed cultivation and manufacturing facility in Valleyfield, Quebec from Medican Organic Inc., a wholly-owned subsidiary of The Green Organic Dutchman Holdings Ltd. (“TGOD”) through an all-cash offer of $27 million plus the funding of certain deposit requirements of approximately $5.7 million.   The acquisition was financed through non-brokered private placements of (i) $19.3 million resulting in the issuance of 107,222,222 new common shares in the capital of Cannara at a price of $0.18 per share (the “Equity Raise“) and (ii) $5.7 million in the form of an unsecured convertible debenture bearing interest at 4% per annum(the “Debenture” and, collectively with the Equity Raise, the “Offerings“). The sole subscriber to the Offerings is Olymbec Investments Inc. (“Olymbec“), a company partially owned/controlled by Mr. Derek Stern, currently a member of the board of directors of Cannara, making this part of the transaction a related party transaction.   Following its acquisition of 107,222,222 common shares of Cannara through the Equity Raise, Olymbec now holds 161,131,694 of common shares, representing 18.98% of Cannara’s issued and outstanding common shares. The conversion price of the Debenture is $0.18 per common share and the number of common shares that could be issued to Olymbec upon conversion would be 31,666,667 common shares potentially increasing the total number of shares to be issued under the Offerings to 138,888,889, which combined with Mr. Stern’s current holdings and the common shares acquired through the Equity Raise, would increase the…

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Source : Cannara Biotech Inc. Completes Acquisition of TGOD’s State-of-the-art Cultivation and Manufacturing Facility in Valleyfield, Quebec

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