US (OK): Acquisition of 35,000 sq ft cultivation, planned expansion of 65,000 sq ft

CannaPharmaRx has signed a Letter of Intent (LOI) to purchase an operating cannabis facility located in Braman, Oklahoma.

The property consists of 35,000 square feet of cultivation capacity, with a planned, phased expansion to 65,000 square feet, by the end of 2022 and up to five harvests per year. The purchase will be completed via a secured note and will include the transfer of licenses. The transaction is expected to close prior to March 31, 2022.

The facility has ongoing growing and sales operations and should the deal be finalized, CannapharmaRx will realize the first harvest and sales from this property on closing. The estimated annual revenue is approximately $21 million. Between the current Cremona facility and this facility, the Company anticipates combined annual revenues of $40 - $50 million.

The company, in addition to existing sales in Oklahoma, has received oral commitments for offtake agreements for both facilities and should finalize these deals prior to harvesting.

"The company continues to achieve significant milestones and should start to recognize significant revenue during early Q2. We continue to identify other areas for potential expansion and are confident in distribution on several continents by the middle of this year," commented Nick Colvin, CEO of CannapharmaRx.