AgraFlora announces acquisition of outstanding shares of Sanna
Category: #business  By Mateen Dalal  Date: 2019-12-06
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AgraFlora announces acquisition of outstanding shares of Sanna

 

  • Under the agreement terms, the company is required to pursue the acquisition of 100% of Sanna’s outstanding shares.
  • The acquisition is anticipated to amplify the production capacity of AgraFlora to two times the current production by 2020.

Mergers and acquisitions have been a part of every company’s strategic move to sustain its presence in the global market. In one such instance, AgraFlora Organics International, one of the diversified international cannabis companies has reportedly announced entering into an interim agreement of acquiring the stakes of Canadian cannabis company, Sanna Health Corp.

It has been claimed that Vancouver based AgraFlora is likely to take over 100 per cent of the certified and outstanding shares of Sanna. For the records, Sanna is a Cannabis company based out of Canada having claimed the Standard Cultivation License, Standard Processing License, and the Medical Sales License, under the ACMPR (Access to Cannabis for Medical Purposes Regulations).

As per credible reports, the terms of the agreement specify that this acquisition will demand an exchange of USD 23 million in the shares in company capital with a benchmark of USD 0.30 per share. 

On this matter, the CEO of AgraFlora, Brandon Boddy cited that the acquisition can be labelled as a significant acquisition for the company. This transaction can be remarked as transformative move by the company as it is gradually increasing - resulting in about 8% escrowed, millstone based dilution to the company’s current capital structure along with the below mentioned advantages for the company:

  • Apparently, the integration of Sanna is likely to optimize the production capacity of the company by 2020.
  • The cannabis company’s current on-site foundation would enable AgraFlora for corresponding, margin-rich extraction abilities, and mission critical east- cost high density population presence.
  • Sanna’s access to its reputable and market-leading product portfolio will augment the company’s already established identity over the years.
  • Also, this acquisition is expected to enhance AgraFlora’s high-visibility distribution across the regions of Canada, as it vies to expand its retail penetration across the country.
     

Source credit: https://www.streetinsider.com/Globe+Newswire/AgraFlora+Organics+To+Acquire+88-Acre+Outdoor+Cannabis+Grow+and+27%2C000+Sq.+Ft.+Licensed+Cannabis+Processing+Facility/16211825.html

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About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

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