Pharmagreen Biotech has signed a MOU (Memorandum Of Understanding) to acquire all the assets (includes property, structures and cannabis licences) and further develop a state of the art flowering greenhouse of approximately 12,000 sq ft or the maximum allowed square footage by California State and Regional County.
The parties agreed that the total purchase price will be $2.4 Million (a combination of cash and shares). The target acquisition comes with a distribution and sales network and has existing sales.
Currently, management is in the process of completing its due diligence with the target of having a definitive agreement soon thereafter. Upon signing and once funds have been obtained, Pharmagreen will start the immediate process for the construction of a state-of-the-art cannabis flowering greenhouse utilizing the latest IoT (Internet of Things) technologies to produce highest quality THC flower and biomass and maximize the square footage for production. With this construction completed, estimated to take about 5 months from start to finish, they are planning to increase the current revenues of $500,000 per year to over $10 Million annually with 4 crop rotations per year.
To manage this high scale and high-quality production facilities(s) they are very excited to be working with the current individual who is a one of a kind, third generation Grand Master Grower of cannabis. His grandfather, a former biologist/botanist, planted the first cannabis plant in 1953; his father continued the tradition and further developed the family skill sets with breeding some of the most desired strains in the industry. So as a young lad, he had the opportunity to absorb and learn the skill sets for cultivating cannabis that very few people possess.
Additionally, upon signing of the definite agreement and once funds have been obtained, the company plans to immediately start the application process with the state and county for a nursery licence for the production and sale of tissue cultured starter plantlets for our greenhouse(s) operations and to supply the local cultivators in California. The company intends to build a maximum allowable size facility.
“We have reached the next milestone of Pharmagreen’s business development with this MOU for acquisition and business development. We have selected a region that is the largest state economy in U.S. and ranks fifth in the world and Northern California is considered to be God’s country for cannabis cultivation. Also, to be one of the best we have to have the best on our team and we certainly have that. Partnering with a third Generation Grand Master Grower and cultivating in state of art facilities with the best starter plantlets is the ultimate formula for success,” believes Peter Wojcik, CEO of Pharmagreen. “And this is just the beginning as we will also start the application process for the development of a Cannabis Biotech Complex for the production of tissue cultured starter plantlets,” concluded Mr. Wojcik.