CAN (BC): New Leaf Ventures receives approval for sale of cultivation assets

New Leaf Ventures announces Washington State Liquor Cannabis Board (WSLCB) has approved the sale of the license holder’s cultivation license to the third-party asset management Company. This solidifies NLV’s sale of cultivation-related assets through its wholly-owned subsidiary New Leaf Equipment Co., providing an infusion of capital into current operations. The Company and the license holder remain committed to the development, production, distribution, and sale of cannabis retail brands and products.

A third-party asset management company has purchased the turnkey cultivation infrastructure and equipment and will lease the cultivation facility. New Leaf Enterprises (the license holder) will retain its processor license, allowing it to develop, manufacture, and distribute all cannabis-derived products in the State. New Leaf USA retains the option to purchase the processor license should ownership legislation in the State change in the future. The sale of all fixed assets and equipment related to the cultivation facility and release of the facility lease will allow New Leaf to focus its operations on the advancement of processing and distribution of high-quality consumer goods to retailers throughout the State. This transaction is a significant step forward towards aligning New Leaf Enterprises operations with New Leaf Ventures “House of Brands” core mission and business model. Gross sale proceeds to the Company’s subsidiaries pursuant to the divestiture were US$266,797.

Dax Colwell, CEO & Co-Founder of New Leaf USA & Director of New Leaf Ventures Inc., advises, “Everyone on both sides of the transaction is thrilled to have this finally completed. As we’ve worked diligently to bring this to a close, time has shown we’ve made the right decision as an organization to step away from indoor cultivation. The team has continued to do exceptional work building out the new procurement model, and I commend them for their efforts. Our continued mission is to have trusted and quality brands in the marketplace.”