Liberty Health Sciences entered into a purchase and sale agreement to acquire an additional 36 acres of land in Alachua County, Florida for $866,975.00 (USD) adjacent to their existing facility at Chestnut Hill Tree Farm. The purchase price paid in respect of the transaction was funded from existing cash on hand. No additional permits or approvals are required in respect of the transaction. The company anticipates the transaction closing on August 31, 2017.
"This land purchase represents a key piece of our aggressive expansion plan in the State of Florida," said George Scorsis, CEO and Director of Liberty Health Sciences Inc. "Securing an additional 36 acres of land positions Liberty for exciting growth over the next 24 months to serve the growing demand for medical cannabis in Florida."
According to state reports, Florida has seen a 60 per cent increase in the number of patients being treated with medical cannabis since June. Liberty expects this number to continue to grow exponentially due to more physicians recommending cannabis as a treatment option and an increase in qualifying medical conditions. The additional land will allow Liberty to increase production of medical cannabis over the next 18 months to meet growing patient demand and is expected to have a significant positive impact on local economic development in the north central region of Florida. Whereas the company's current facility consists of 13,000 square feet of growing space and produces 700 kgs annually, the transaction represents Phase I of a three-part expansion process for Liberty:
- Part I: Purchase of additional 36 acres of Florida land at Chestnut Hill Tree Farm site.
- Part II: Immediately doubling output and constructing adjoining greenhouses to increase annual medical cannabis production to 2,800kgs with an additional 33,000 square feet of growing space by January 2018.
- Part III: Expected to increase annual medical cannabis production to 25,000kgs with 435,600 square feet of growing space by December 2019.
"We're extremely pleased with this land purchase," said John Cervini, Director of Liberty Health Sciences Inc. "The extra space will go a long way to help meet the ever-growing demand for our high-quality, clean and safe pharmaceutical grade cannabis for Florida patients."
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