Latest Agris Farms News
Nov 26, 2018
Arguments Set in Florida Medical Marijuana Smoking Ban Case The case stems from a 2017 state law that was designed to carry out a voter-approved 2016 constitutional amendment. TALLAHASSEE, Fla. (The News Service of Florida) — An appeals court will hear arguments Jan. 8 in a legal battle about whether a ban on smoking medical marijuana violates a 2016 constitutional amendment. The 1st District Court of Appeal on Monday scheduled the arguments in an appeal filed by the Florida Department of Health, according to an online docket. The case stems from a 2017 state law that was designed to carry out a voter-approved 2016 constitutional amendment that broadly legalized medical marijuana. RedeCan said that it is recalling its B.E.C. strain of cannabis. A cannabis manufacturer is recalling one of its products after receiving five complaints that it contains mold. RedeCan said Thursday that it was recalling its B.E.C. strain of cannabis. All of the complaints involved 3.5-gram bottles of B.E.C. with lot code 4B2L3 sold through the Ontario Cannabis Store. Federal regulations require cannabis producers to retain a sample of every batch they send to market. RedeCan said its sample of lot 4B2L3 shows no evidence of mold. Agris Farms operates a 40,500-sq.-ft. greenhouse facility and a 3,000-sq.-ft. craft-style indoor facility in Yolo County, California. Transaction Overview Agris Farms operates a fully-licensed and fully-operational 40,500-sq.-ft. greenhouse facility and a 3,000-sq.-ft. craft-style indoor facility in Yolo County, California. The Yolo facility is in commercial production with annual production capacity of 6,000 lbs. of cannabis. Pursuant to the Agris Agreement, Lineage would acquire a 100% ownership interest in Agris Farms based on an implied enterprise value of US$6,600,000. Consideration would be in the form of stock and the assumption of liabilities. Management Commentary “The acquisition of Agris Farms and the signing of this definitive agreement, are directly aligned with the strategic framework we have outlined to our shareholders,” said Peter Bilodeau, CEO of Lineage. “As one of California’s premium quality low-cost producers, Agris Farms serves as a tremendous building block to launch our California growth initiative.” "We are very excited to be joining the Lineage team as we believe there are meaningful ways in which we can grow faster together.” said Menna Tesfatsion, CEO of Agris Farms. "We are focused on delivering top quality cannabis products to California's discerning consumer base and we are confident that Lineage's platform will provide access to a best-in-class distribution and manufacturing network enabling us to scale more aggressively and more efficiently." Transaction Details Pursuant to the Agris Agreement, the purchase price for the Agris Farms Acquisition is US$6,600,000, payable on closing, comprised of: (i) US$2,148,880 payable by the issuance of Lineage common shares at a price of C$0.165 per share; (ii) the assumption of liabilities in the aggregate amount of US$2,951,120; and (iii) the provision of a put option by Lineage in favor of the holder of a US$1,500,000 subordinated note where the note holder can choose to convert the subordinate note into a Lineage convertible note convertible into a unit of one Lineage common share and one half of a warrant with a conversion price of C$0.19 per share and a warrant exercise price of C$0.25 per share. The sellers may also be entitled to receive an earn-out payment equal to six times (6x) of any EBITDA in excess of US$1.1 million during the period of May 1, 2018 to April 30, 2019. In case of consolidation or reclassification of Lineage common shares, the issue price, number of shares issuable and type of shares to be issued in the Agris Farms Acquisition will be adjusted accordingly. Closing of the Agris Farms Acquisition is subject to various conditions, including the approval of Yolo County for the transfer of Agris Farms membership units to Lineage, closing of the proposed reverse takeover transaction between Lineage and FLRish, Inc. d/b/a Harborside. There is no assurance that the Agris Farms Acquisition will be completed as proposed or at all. Bridge Loan from Harborside On November 13, 2018, Lineage issued a promissory note in favour of Harborside in the principal amount of C$2,000,000 as a bridge loan. The note is unsecured, and bears in interest at 12% per annum, or 18% per annum while the loan is in default. The bridge loan will mature after one year, which may be extended for another year unless Lineage receives a written notice from Harborside prior to 90th day before the expiry of the then current term that Harborside does not wish to extend the term of the loan. However, if the proposed reverse takeover transaction between Lineage and Harborside is terminated, the bridge loan will mature on the date that is six months after the date of termination. The proceeds of the bridge loan are expected to be used by Lineage to subscribe for Agris Farms membership units as set out below. Subscription of Agris Farms Membership Units In connection with the Agris Farms Acquisition, as part of the assumption of liabilities of Agris Farms, Lineage is to subscribe for 698.17 membership units in Agris Farms at US$2,149.47 per unit with a total subscription price of US$1,500,000. Agris Farms will use the subscription proceeds from Lineage to repay and retire a senior secured note in the principal amount of US$1,500,000. Lineage's subscription of membership units and Agris Farms' repayment of the senior note are expected to occur on November 23, 2018. Lux Acquisition Update The Company also wishes to report that the previously announced acquisition of Lucrum Enterprises Inc., d/b/a LUX Cannabis Dispensary and the proposed reverse takeover transaction with Harborside are advancing with execution of a definitive agreements anticipated in short order. VANCOUVER, BC, CANADA (22 November, 2018) – Weekend Unlimited Inc. announces the closing of its deal to acquire California’s Canna Candys (CBD) and Canna Medibles (THC), strengthening the Company’s product portfolio as it executes on its strategy to build its flower, extracts and edibles verticals. “This is a highly strategic acquisition for Weekend, following our business objective to identifying strong brands that require capital and expertise to grow,” said Mr. Cody Corrubia, President and CEO of Weekend. “Paul Chu, CEO of Canna Candys, leads a team with tremendous product development expertise and a thriving distribution network in Southern California,” added Mr. Corrubia. “Canna Candys and Canna Medibles are perfectly positioned to expand throughout U.S. states where recreational or medical cannabis is legal,” said Mr. Paul Chu, CEO of Canna Candys. “Now, as part of Weekend, we will expand our distribution to build upon the strong foundation in Southern California adding New York, Florida, Nevada, New Jersey, Texas and on to Europe and Asia,” added Mr. Chu. Canna Candys (THC) and Canna Medibles (CBD) highlights: 2019 same channel revenue forecast of approximately USD$ 2 million* Launching a new 10MG VESIsorb line of CBD and THC edibles Distribution to 380 retail stores Southern California Artisan handmade hard candies with 31 flavors & lollipops with 10 flavors CBD only distribution deals being negotiated in NY, FL, NV, NJ, TX, CA, Europe and Asia New product lines to include gummies, beverage packs, chocolates *Cost of goods 38% based on current available supply chain agreements and cost of goods for lab tested and approved raw material. Risks associated with the forecast are competition, regulatory change, an increase in costs, and consistent availability of lab tested and approved raw material. Weekend provided a secured loan of US$ 750,000 and converted this note for 51% of the equity in the company that owns these brands. Weekend paid an additional US$ 690,000 and is in the process of issuing shares worth US$ 1,440,000 at a 5 day VWAP (the “Escrow Shares”) to acquire a further 29% of the company so as to own 80%. The final 20% can be purchased, during a time period ending 90 days after the first closing, for US$ 720,000, to be paid by cash, shares or a combination of the two as agreed to by the parties. The Escrow Shares will be released at that date that Canna Candys and Canna Medibles have occupied and are operation in a manufacturing facility located in Adelanto California. The nearly year-long slog to have a multi-billion-dollar legal marijuana industry in the Garden State takes a major first step Monday. State lawmakers will begin to debate a recently unveiled bill that would pave the way to making New Jersey the latest state to legalize recreational marijuana. The measure has been debated privately in the Democrat-controlled state Legislature for years, but never stood a chance of becoming a reality under former Gov. Chris Christie , a Republican who stood in staunch opposition. But with a change in leadership 10-months ago in Gov. Phil Murphy, a Democrat who campaigned on legalizing cannabis, lawmakers are finally set to put the process in motion.