Mota Ventures has signed a binding letter of intent dated January 2, 2020 (the “LOI”) which outlines the terms and conditions pursuant to which, the Company will acquire all of the share capital of Tropical Verde Coast.
"Tropical Verde is an arms’-length party that holds a Tier 1 cultivation license in Jamaica," the team with the company explains. "Tropical Verde is focused on cultivation and extraction of cannabis as well as distributing cannabis products in herb shops, dispensaries and health and wellness retail locations across the Caribbean. Tropical Verde is currently finalizing its irrigation systems, fencing and security on five acres of leased property, and anticipates that growing will commence by late Q1 2020. Jamaica has a long and rich history of producing high-quality marijuana products. Jamaica’s outdoor growing conditions coupled with the availability of unique strains, position it to be a leader in the Caribbean region. As a result of the acquisition, Mota Ventures will indirectly hold a 49% stake, and a 95% net profit royalty of a medical cannabis company that holds a tier 1 Cultivator’s license in Jamaica to produce cannabis for medicinal purposes."
“This transaction shows Mota Ventures strategic commitment to becoming a low cost producer and distributor of high quality CDB products globally. The Caribbean region is a very large emerging market with Jamaica leading the way,” said Joel Shacker, Chief Executive Officer of the Company.
According to them, the LOI contemplates that the Company, would acquire all of the issued and outstanding share capital of Tropical Verde in consideration for Cdn$5,000,000, which will be satisfied through the issuance of 11,111,111 common shares (the “Consideration Shares”) at a deemed price of Cdn$0.45 per share, to the existing shareholders of Tropical Verde. The Consideration Shares will be subject a four-month-and-one-day statutory hold period, in accordance with applicable securities laws.
The Proposed Acquisition remains subject to a number of conditions, including completion of due diligence, receipt of any required regulatory approvals, and the negotiation of definitive documentation, which is expected to include additional warranties, representations, covenants and terms and conditions that are customary and consistent with industry standards for this type of transaction. The Proposed Acquisition cannot be completed until these conditions have been satisfied.
The Company also announces that with completion of the acquisition of NNZ Consulting Corp. (“NNZ”), the board of directors has decided to award Nima Bahrami, the President of NNZ, a bonus of 250,000 shares of the Company for the instrumental work he did in arranging the transaction. All shares issued to Mr. Bahrami will be subject to a four-month-and-one-day statutory hold period in accordance with the policies of the Canadian Securities Exchange.
For more information:
Mota Ventures
800-1199 West Hastings St.
V6E 3T5. Vancouver, BC,
Canada
+1 (604) 423-4733
ir@motaventuresco.com
motaventuresco.com