Citation Growth has entered into an amended agreement (the “Amended Agreement”) with 1186626 B.C. in connection with its joint venture agreement (the “JV Agreement”) on the Company’s Celista property located in British Columbia.
“We are very pleased with how this partnership has evolved. We have a big vision for this project, and are ready to move forward, full speed ahead, having the funding set in place.” Stated, Rahim Mohamed, President. The Company is currently in the process of constructing the first two of ten buildings, totaling 100,000 square feet of cultivation and processing space at this project.
"Pursuant to the JV Agreement, 1186626 was to provide a capital contribution in the aggregate amount of $10 million to be delivered to the Company in four tranches of $2.5 million for the construction of ten 10,000 square foot cannabis production facilities," the team with the company explains. "From the date of the agreement until the third year that all ten facilities are fully operational and in full production, project distributable cash flow (the “Project Distributable Cash”) will be allocated as to 50% each to the Company and 1186626, and 100% to the Company thereafter."
"Under the terms of the Amended Agreement, the Capital Contribution will be $6,350,000 (the “Amended Contribution) to finance the completion of the Company’s 10,000 square foot facility, and the Project Distributable Cash has been amended as to 80% to 1186626 and 20% to the Company until the first year anniversary that 1186626’s Amended Contribution has been fully repaid, and 100% to the Company thereafter," they conclude.
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Citation Growth Corp.