VANCOUVER, BC / ACCESSWIRE / September 18, 2020 / Pac Roots Cannabis Corp. (“PacRoots” or the “Company”) (CSE:PACR), is pleased to announce the closing of a share purchase agreement with 1088070 BC. LTD., a company existing under the laws of Canada (“1088“) and Dave Jonkman and Norm Tapp (together, the “1088 Shareholders” and each, a “1088 Shareholder“) pursuant to which the Company has acquired all of the issued and outstanding shares of 1088. 1088 owns and controls nine parcels of land comprised of 250 acres of prestigious land in the Fraser Valley Region of British Columbia.
“The addition of such a substantial package of land to our portfolio is a major step for PacRoots. We are pleased to have the opportunity to add significant acreage with an acquisitional cost base of $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.” – President and CEO, Patrick Elliott
Following a 51-day due diligence period, the Company is satisfied with its investigations and the closing documents associated with the transaction have been exchanged. As consideration for the 1088 shares, the Company will pay an aggregate of $1.5 million in cash and issue an aggregate of 3 million common shares to the 1088 Shareholders, pro rata in accordance with their holdings as follows (the “Consideration”):
(a) 375,000 shares to be issued on or before the date which is 30 days from the date of Closing (the “Closing Date”);
(b) $200,000 within three months of the Closing Date;
(c) $300,000 in cash and 562,500 common shares within 12 months of the Closing Date;
(d) $400,000 in cash and 937,500 common shares within 18 months of the Closing Date; and
(e) $600,000 and 1,125,000 common shares within 24 months after the Closing Date.
Pending the payment of the Consideration in full, 1088 will grant a mortgage over its land package in favor of the 1088 Shareholders.
The acquisition of 250 acres of pristine land in the Fraser Valley Region of British Columbia, coupled with an indoor facility in the late stages of permitting in Lake Country, B.C., and a 60% interest in a 100 acre Hemp JV project in Rock Creek, B.C., are complementary for a portfolio of production and development assets. A land package of this magnitude demonstrates a long pipeline of development projects for the Company. The Fraser Valley region of British Columbia is notoriously known as an agricultural and industrial hub for the province.
The Fraser Valley Regional District (FVRD) is one of the most intensively farmed areas in Canada, generating the most significant annual farm income of any regional district in British Columbia. Despite the rapid population growth of the region, agriculture has flourished and remains an essential component of the region’s economy.
Access to a local market of over 2.5…
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