Cann Group has agreed to sell its Southern cultivation and manufacturing facility to Sativite in a deal valued at nearly A$5.5 million.
The firm put the facility on the market in October 2022 as part of a plan to consolidate the majority of its operations in Mildura. The parties agreed to sell the Southern facility’s land and business assets, license certain Cann genetics, and provide services from Cann to Sativite to facilitate the transfer of commercial operations.
To maintain operational continuity, the transaction will take place in two phases. Sativite will first acquire the land and building for $3.1 million and provide Cann with a lease to continue working at the site on its behalf. Sativite has already paid a 10% non-refundable deposit in terms of the purchase contract.
The lease, which will involve a nominal lease, will commence on or around the completion of the land contract, which is expected on 28 February.
Read more at abctoday.news