- Pac Roots Cannabis (PACR) has executed a share purchase agreement for the acquisition of 250 acres of Fraser Valley land
- The company will pay the owners an aggregate C$1.5 million in cash, and issue an aggregate three million company shares
- PacRoots will dispense the cash and company shares in intervals across a period of 24 months
- The company will use the land to cultivate strains of CBD and THC that thrive in the Fraser Valley climate
- Pac Roots Cannabis (PACR) is up 16.88 per cent and is currently trading at 45 cents per share
Pac Roots Cannabis (PACR) has executed a share purchase agreement for the acquisition of 250 acres of Fraser Valley land.
The company’s agreement is with Canadian company 1088070 BC, as well as Dave Jonkman and Norm Tapp. Under the agreement, PacRoots will acquire all of 1088070 BC’s issued and outstanding shares, in exchange for nine parcels of land which it owns.
The nine parcels are comprised of 250 acres of land in British Columbia’s Fraser Valley Region. The region is a centre of agricultural production, and one of the most intensively farmed areas in Canada.
Fraser Valley boasts perfect conditions for the agricultural industry, including high-quality soil, a cooler and wetter climate, and accessible water. As such, it provides the optimal conditions for growing over 200 commercial products, including cranberries, raspberries, potatoes, corn, and cannabis.
PacRoots will use the purchased land to cultivate hemp and cannabis, with help from its genetic licensing partner, Phenome One. Together, the companies will grow elite CBD and THC strains which thrive in cooler, wetter climates, and generate high crop yields.
PacRoot’s President and CEO, Patrick Elliott, called the land package acquisition a major step for the company.
“We are pleased to have the opportunity to add significant acreage with an acquisitional cost base of C$9,600 per acre.
“This land has no zoning restrictions, and is not situated within the Agricultural land reserve, which provides for infinite development possibilities.
“With the partnership with Phenome One, and the access to their extensive genetic library, PacRoots is extremely well-positioned to deliver the best-in-industry quality and throughput to the consumers with a pipeline of scalable development properties in the portfolio,” he said.
In exchange for 1088070 BC’s land, PacRoots will pay an aggregate C$1.5 million cash, and issue an aggregate 3 million company shares. However, the company will dispense the cash and shares in intervals throughout a 24-month period.
No later than 30 days after the transaction’s closing date, an initial 375,000 shares in PacRoots will be issued. Within three months of the closing date, the company will pay an initial cash sum of $200,000.
Within 12 months of the closing date, $300,000 cash and 562,500 common shares will be issued. No later than 18 months after the closing date, $400,000 cash and 937,500 common shares will be issued.
Finally, within 24 months of the closing date, the company will issue the last installation of $600,000 and 1.125 million common shares.
Pac Roots Cannabis (PACR) is up 16.88 per cent and is trading at 45 cents per share at 9:49am EDT.