- Cannabis company, Sunniva (SNN) has entered into a purchase and sale agreement with a British Columbian investment company
- Through the agreement, Sunniva will sell the OK Falls property to the buyer for C$6.8 million in gross proceeds
- The company will make approximately $3.2 million after various deductions, including mortgage discharge, legal fees, and an agent commission fee
- Closing of the property sale transaction should take place on or before August 10, 2020
- Sunniva (SNN) is currently suspended but last traded at 15.5 cents per share
Cannabis company, Sunniva (SNN) has entered into a purchase and sale agreement with a British Columbian investment company.
Sunniva entered the agreement through its wholly owned subsidiary, 1167025 B.C., which agreed to sell the company’s Okanagan Falls (OK Falls) property. The undisclosed buyer will pay C$6.8 million in gross proceeds to purchase the property.
However, Sunniva will only see approximately $3.2 million in net cash proceeds at the closing of this property sale.
This is due to various costs associated with closing the transaction, including legal fees, and a three per cent commission fee for the buyer’s agent. Discharging the existing mortgage on the OK Falls property will also create a deduction on the original purchase price.
Closing of the transaction is subject to the completion of due diligence, and confirmation of the waiver of conditions of the property by the buyer. However, the closing is not subject to a financing condition.
If the process goes smoothly, the transaction should close on or before August 10, 2020. Regardless of the sale, Sunniva will retain ownership of its subsidiary, 1167025 B.C., and various equipment and assets currently onsite at the property.
The company did not specify if this is the same Okanagan Falls property recently mentioned in a lawsuit against Sunniva’s subsidiary, Sunniva Medical. The plaintiff, PTI Transformers, commenced the lawsuit against Sunniva Medical in relation to a supply agreement between the two entities.
Under the agreement, PTI Transformers was to build and supply two electrical substations for a project at an Okanagan Falls property.
Earlier this month, PTI Transformers filed a notice of civil claim with the Supreme Court of British Columbia, with regards to amounts payable. The claim is seeking judgement for around $2.25 million, which is allegedly due.
At this time, Sunniva Medical has 12 days left to respond to the notice of civil claim.
Sunniva (SNN) is currently suspended but last traded at 15.5 cents per share.