TransCanna Holdings has signed a binding agreement to acquire all the outstanding shares of Lyfted Farms, which updates the terms of the previously announced non-binding letter of intent.
"Lyfted Farms brings over 2 decades of cultivation experience to the company and currently holds a Distribution License, Nursery License, and a Cultivation License at both the State and Local levels," the team with the company explains. "Lyfted Farms has long been a recognized leader in complying with statewide regulations, the company was issued the 9th Cultivation License in the State of California."
"With this acquisition, we are not only securing a high-quality brand but fulfilling a need in sourcing and stabilizing our upper supply chain which we see as a serious requirement in the California Cannabis marketplace" stated Steve Giblin, TransCanna President & CEO. "This acquisition represents a significant talent acquisition for the company moving forward.
According to them, the purchase price for the acquisition will be $6,300,000 USD comprised of $5,550,000 USD in cash and the issuance of 1,000,000 TransCanna Common Shares. $150,000 USD has already been advanced as a deposit and the remaining cash portion of the purchase price will be payable as to $400,000 USD on closing and the issuance by TransCanna of a non-interest bearing promissory note in favour of the vendors in the amount of $5,000,000 USD.
Under the TransCanna umbrella, Lyfted Farms is expanding their nursery and production capacity for a cost of $695,000 USD of which $105,000 USD has already been advanced. Completion of the expansion is expected within the next 90 days. "This will pave the way for new staff to be onboarded and trained while the company looks to complete the process of licensing and building out the 196,000 square foot Daly facility," they conclude.