VANCOUVER, British Columbia, Sept. 27, 2019 (GLOBE NEWSWIRE) — AgraFlora Organics International Inc. (“AgraFlora” or the “Business”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a development oriented and diversified international cannabis corporation, is pleased to announce that additional to a industrial rights and provide agreement (the “Agreement”), dated May well 22, 2019, the Business has entered into a complementary cooperation agreement (the “Co-Op Agreement”).
Beneath the terms of the Co-Op Agreement, a celebration to the original Agreement has subscribed to a non-brokered private placement (the “Offering”) at a 28.two per-cent premium to AgraFlora’s 5 day VWAP of C$.234 for total proceeds of C$two,000,000. In consideration for the Supplying, AgraFlora has agreed to defer payment (the “Deferred Payments”) for the initial C$two,000,000 acquire of dried cannabis flower, beneath the previously announced Agreement. Such Deferred Payments shall be repaid in equal portions of C$250,000 across the subsequent C$eight,000,000 in anticipated dried cannabis flower purchases.
In connection with the Supplying, the Business has issued six,666,667 transferable specific warrants (the “Special Warrants”) to a single purchaser at a value of C$.30 per Specific Warrant. Each and every Specific Warrant is convertible into units (the “Units”) with every Unit consisting of a single prevalent share (the “Shares”) of the Business and a single transferable prevalent share acquire warrant (the “Warrants”), with every Warrant entitling the holder thereof to acquire a single extra Share of the Business at a value of C$.50 per Share for a period of 36 months from the date of issuance of the Warrants.
All securities issued are topic to a 4-month hold period pursuant to applicable securities laws of Canada, right after which time the Specific Warrants are convertible into the Units.
The European healthcare cannabis cannabinoid-derived CPG markets continue to mature, as a result affording certified market place participants to accomplish robust margins by way of the distribution of premium cannabis flower and linked derivative goods. The Agreement affords AgraFlora’s industrial partners with a constant provide of higher-grade cannabis flower, permitting the continued penetration of higher-worth EU patient populations.
The aforementioned Agreements are contingent on AgraFlora’s receipt of a typical cultivation and accompanying sales licences from Wellness Canada for its flagship Delta Greenhouse Complicated. AgraFlora’s Delta Greenhouse Complicated is extensively regarded to be a single of the most technically sophisticated and environmentally friendly greenhouse operations in the planet, equipped with sector-major cultivation infrastructure.
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a development oriented and diversified corporation focused on the international cannabis sector. It owns an indoor cultivation operation in London, ON and is a joint venture companion in Propagation Service Canada and its huge-scale two,200,000 sq. ft. greenhouse complicated in Delta, BC. The Business is also retrofitting a 51,500-square-foot very good manufacturing practice (“GMP”) edibles manufacturing facility in Winnipeg, Manitoba. AgraFlora has a profitable record of developing shareholder worth and is actively pursuing other possibilities inside the cannabis sector. For much more facts please go to: www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Chairman & CEO
T: (604) 398-3147
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Forward-hunting Facts Cautionary Statement
Except for statements of historic reality, this news release includes specific “forward-hunting information” inside the which means of applicable securities law. Forward-hunting facts is regularly characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other comparable words, or statements that specific events or situations “may” or “will” happen. Forward-hunting statements are primarily based on the opinions and estimates at the date the statements are created, and are topic to a assortment of dangers and uncertainties and other variables that could lead to actual events or benefits to differ materially from these anticipated in the forward-hunting statements such as, but not restricted to delays or uncertainties with regulatory approvals, such as that of the CSE. There are uncertainties inherent in forward-hunting facts, such as variables beyond the Company’s handle. There are no assurances that the enterprise plans for AgraFlora Organics described in this news release will come into impact on the terms or time frame described herein. The Business undertakes no obligation to update forward-hunting facts if situations or management’s estimates or opinions must alter except as needed by law. The reader is cautioned not to spot undue reliance on forward-hunting statements. Further facts identifying dangers and uncertainties that could have an effect on monetary benefits is contained in the Company’s filings with Canadian securities regulators, which are readily available at www.sedar.com.