TransCanna Holdings has announced the execution of a non-binding Letter Of Intent dated May 17, 2019 (the “LOI”) with Lyfted Farms of Modesto, California, to acquire the business and assets of Lyfted. Lyfted Farms is a state licensed producer of high quality indoor grown cannabis. The three permanent state licenses that Lyfted owns are for cultivation (nursery), cultivation (grow), and distribution.
“The acquisition by TransCanna would allow us to solve our biggest current challenge, which is the limited cultivation space at our indoor facilities. It’s now time for us to scale throughout the state. TranCanna’s impressive facility in Modesto, not far from our present location, and their vertically integrated strategy, including distribution, will enable us to achieve that.”
According to the company, on closing of the Proposed Acquisition, Lyfted will receive total consideration of US$5.5 million in cash and one million shares. The Company will pay US$2.75 million at closing and issue a 12 month, unsecured, interest only note for $2.75 million at 7% interest p.a. (the ”Note”). The Note is repayable by the Company in part or in full anytime during its 12 month term. The Company is paying a non-refundable deposit of US$50,000 in cash, which is deductible from the total consideration payable under the terms of the Proposed Acquisition.