AgraFlora Closes Acquisition of Natural Flower’s Downstream and Product Formulation Asset Portfolio

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VANCOUVER, June 7, 2019 /CNW/ – AgraFlora Organics Worldwide Inc. (“AgraFlora” or the “Firm”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a progress oriented and diversified worldwide cannabis firm, is happy to announce it has accomplished a transaction referring to the acquisition of downstream and product formulation portfolio (the “Property”) from Natural Flower Investments Group Inc. (CSE: SOW) (FWB: 2K6) (OTC: QILFF) (“Natural Flower” or “OFIG”). Pursuant to the phrases of an executed Asset Buy and Sale Settlement (the “Settlement”), this transaction reunites 70 p.c of AgraFlora’s three way partnership entity, Propagation Companies Canada’s (“PSC¨) 2,200,000 sq. foot Delta Greenhouse Complicated underneath a consolidated company umbrella.

Underneath the phrases of the executed Settlement, AgraFlora will difficulty 1.15 widespread shares within the capital of AgraFlora for every one (1) issued and excellent share of Natural Flower (the Consideration Shares”). It’s anticipated that the Consideration Shares shall be distributed to the shareholders of Natural Flower upon formal institution of a report date.

As per the phrases of the executed Settlement, AgraFlora has acquired the next Property from Natural Flower:

  • 20% curiosity within the flagship 2,200,000 sq. foot Delta Greenhouse Complicated;
    Unique trans-European distribution and GMP cannabis processing/ending agreements comprised of 80,000 retail endpoints/pharmacies, spanning 16 nations; and,
  • An array of home downstream/product formulation operations comprised of:
    Joint-Enterprise (“JV”) with one in all North America’s largest producer and distributor of chocolate and sugar confectionary merchandise;
  • Unique partnership with a number one Toronto-based Brewhouse with deliberate output capability of over 200,000 HL every year, to formulate, manufacture and distribute cannabinoid-infused drinks;
  • Canadian CBD cosmetics/topicals manufacturing firm, outfitted with a vertically built-in, farm-to-face mannequin;
    76 acres of un-zoned agricultural land with 1,000 ft of river frontage in New
  • Brunswick, together with 17,500 sq. ft of commercial-grade amenities and 12 separate constructions;
  • Well being Canada awarded cannabis analysis licence and an Industrial Hemp License;
    Unique North American contract manufacturing and distribution settlement with the world’s first skilled sports activities staff to introduce its personal branded CBD-infused efficiency product line;
  • Strategic procurement, warehousing, home/worldwide product registration and regulatory illustration capabilities;
  • Unique cannabinoid-infused provide and distribution settlement with a premier Canadian Bottler;
  • Sole Canadian producer and distributor of an modern beverage allotting cap technology- outfitted with a proprietary cannabinoid supply mechanism;
    Proprietary manufacturing course of and formulation catalogue for a Nicorette-inspired medicinal cannabinoid product line;
  • Canadian unique rights to a listing of cannabinoid-infused product formulations;
  • Unique rights to a portfolio of 57 registered logos in Canada for a diversified vary of cannabis services; and,
    Sub-licensing settlement unique sub-license to market and distribute patent-pending “THC overdose antidote”.

With the reunification of Natural Flower’s 20 per cent curiosity in PSC underneath a consolidated banner, AgraFlora’s curiosity within the projected 2020-funded manufacturing from the Delta Greenhouse Complicated is forecasted to be 175,000,000-grams of premium dried cannabis flower. AgraFlora’s low-cost home cannabis manufacturing potential is additional de-risked by a 5 yr, 100,000,000-gram off-take settlement with ICC Worldwide Hashish Corp. (CSE: WRLD.U) (FWB: 8K51) (OTC: WLDCF) (“ICC”), in addition to a 25,000,000-gram every year off-take settlement with Namaste Applied sciences Inc. (TSXV:N) (FWB: M5BQ) (OTCQB: NXTTF); topic to approval of its cultivation and gross sales licenses by Well being Canada.

Projected cannabis manufacturing from the Delta Greenhouse Complicated, coupled with a beforehand introduced income sharing and distribution association with ICC, will afford AgraFlora the chance to seize vital money flows at each the upstream and downstream layers of the cannabis worth chain; realizing materials publicity to each the wholesale and eventual retail distribution of dried cannabis into high-value European affected person populations.

“Our flagship Delta Greenhouse Complicated is extensively thought of to be one of the technically superior and environmentally pleasant greenhouse operations on the planet,” stated Brandon Boddy, Chairman and CEO of AgraFlora Organics Worldwide Inc. “Complemented by service agreements with skilled, finest at school greenhouse operators, coupled with an expedited cultivation infrastructure retrofit, in addition to renewed steerage pertaining to the This fall award of a cultivation licence from Well being Canada, the Delta Greenhouse Complicated is forecasted to generate the important mass required in in the present day’s evolving panorama for Canadian cannabis producers. As we put together for our inaugural harvest which is scheduled for the primary quarter of 2020, AgraFlora appears ahead to the mixing of Natural Flower’s distinctive home downstream asset portfolio and can proceed to aggressively execute on our marketing strategy whereas maximizing shareholder worth.”

“It is a watershed acquisition for AgraFlora, including a broad portfolio of distinctive downstream cannabis property in a wide range of profitable, high-margin verticals, all whereas rising publicity to marketplaces primed for geometric progress, together with the European Union,” continued Boddy. “This really is the penultimate step concerned with elevating AgraFlora to a premier vertically built-in cannabis firm. The addition of Natural Flower’s Canadian property underneath the ‘AgraFlora’ company flag will sign to {the marketplace} the emergence of a brand new Tier 1 Licenced Producer, because the business progresses in direction of the subsequent part of world cannabis normalization.”

ABOUT ORGANIC FLOWER INVESTMENTS

Leveraging strategic relationships, proprietary investments and unique partnerships with preeminent worldwide cannabis cultivators and formulators for the event of finest at school merchandise and types to be marketed and distributed all through our world footprint. By way of its wholly owned subsidiary, Delta Natural Hashish Corp., Natural Flower is launching one of many largest and best cannabis amenities on the planet. Study extra about Natural Flower by visiting our web site at: https://sowcannabis.ca/.

ABOUT AGRAFLORA ORGANICS INTERNATIONAL INC.

AgraFlora Organics Worldwide Inc. is a progress oriented and diversified firm targeted on the worldwide cannabis business. It owns an indoor cultivation operation in London, ON and is a three way partnership associate in Propagation Service Canada and its large-scale 2,200,000 sq. ft. greenhouse complicated in Delta, BC. The Firm has a profitable report of making shareholder worth and is actively pursuing different alternatives inside the cannabis business. For extra data please go to: www.agraflora.com.

ON BEHALF OF THE BOARDS OF DIRECTORS

Brandon Boddy
Chairman & CEO
AgraFlora Organics Worldwide Inc.

Joel Dumaresq
CEO, Director
Natural Flower Investments Group Inc.

The CSE and Info Service Supplier haven’t reviewed and doesn’t settle for accountability for the accuracy or adequacy of this launch.

Ahead-looking Info Cautionary Assertion

Aside from statements of historic truth, this information launch incorporates sure “forward-looking data” inside the that means of relevant securities legislation. Ahead-looking data is regularly characterised by phrases comparable to “plan”, “anticipate”, “challenge”, “intend”, “imagine”, “anticipate”, “estimate” and different comparable phrases, or statements that sure occasions or circumstances “might” or “will” happen. Ahead-looking statements are primarily based on the opinions and estimates on the date the statements are made, and are topic to a wide range of dangers and uncertainties and different elements that would trigger precise occasions or outcomes to vary materially from these anticipated within the forward-looking statements together with, however not restricted to delays or uncertainties with regulatory approvals, together with that of the CSE. There are uncertainties inherent in forward-looking data, together with elements past the Firm’s management. There aren’t any assurances that the enterprise plans for AgraFlora Organics described on this information launch will come into impact on the phrases or timeframe described herein. The Firm undertakes no obligation to replace forward-looking data if circumstances or administration’s estimates or opinions ought to change besides as required by legislation. The reader is cautioned to not place undue reliance on forward-looking statements. Extra data figuring out dangers and uncertainties that would have an effect on monetary outcomes is contained within the Firm’s filings with Canadian securities regulators, which can be found at www.sedar.com.

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