Global Expansion Underway with 10% Equity Investment in Licensed Cannabis Cultivator
CannaPacific among Australia’s only Federally Licensed Cultivators with projected 108,000 sq. ft. Greenhouse
Aleafia Health Global Expansion:Upon closing of the acquisition, CannaPacific will begin retrofitting the greenhouse located in the iconic region of Byron Bay, NSW, Australia.
Aleafia Health Global Expansion:Upon closing of the acquisition, CannaPacific will begin retrofitting the greenhouse located in the iconic region of Byron Bay, NSW, Australia.
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TORONTO, Jan. 18, 2019 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSXV: ALEF: OTCQX: ALEAF, FRA: ARAH) (“Aleafia Health”) or the (“Company”) is announcing its global expansion with the closing of its previously announced investment in CannaPacific Pty Limited (“CannaPacific”), a federally licensed Australian medical cannabis company located in New South Wales, Australia.
CannaPacific is licensed by the Office of Drug Control (ODC) of Australia to cultivate medical cannabis (License MC020/18) and to research medical cannabis (License RL 012/18). CannaPacific has also applied for a manufacturer’s license which has been reviewed by the ODC.
The transaction was completed pursuant to the terms of an Investment Agreement (the “Investment Agreement”) dated January 17, 2019 between CannaPacific, Aleafia Health and CannaPacific’s founder shareholder, Dennis Partners Pty Limited as trustee for Dennis Partners Trust (the “Investment Agreement”). Under the Investment Agreement, Aleafia acquired 10% of the ordinary shares of CannaPacific from the Founder for AUS $100 and Aleafia agreed to contribute to CannaPacific USD $150,000 in working capital in two tranches of USD $75,000 over a six (6) month period. Aleafia also acceded to CannaPacific’s Shareholders Agreement. The TSX Venture Exchange consented to the investment on January 16, 2019.
EARLY MOVER ADVANTAGE WITH 108,000 SQ. FT. GREENHOUSE
CannaPacific recently won the bid to acquire a horticultural property with extensive greenhouses and infrastructure. The property is situated in the iconic Byron Bay region of New South Wales. Upon closing of the property acquisition, CannaPacific will begin retrofitting of the facility, which boasts 108,000 sq. ft. (10,000 sq. m.) of greenhouse cultivation area. The acquisition significantly accelerates CannaPacific’s early mover advantage in Australia’s budding medical cannabis sector. The property also has local government approval for a subsequent 110,000 sq. ft. expansion of the facility. CannaPacific is currently preparing an amendment to their existing licences to conduct cultivation and research at this property.
CannaPacific aims to supply the Australian medical cannabis patients with pharmaceutical grade medical cannabis products. The market size is expected to grow from USD $52 million in 2018 to USD $1.2 billion in 2027, according to BDS Analytics. CannaPacific also intends to export medical cannabis, which was recently authorized by the Australian federal government.
CannaPacific’s management is composed of veterans of medicine, pharmaceutical manufacturing and sales, oncology, hospital management, plant science and cannabis cultivation.
ALEAFIA HEALTH MEDICAL CANNABIS LEADERSHIP
Aleafia will assist CannaPacific in the establishment of dedicated medical cannabis clinics, with shared expertise across patient treatment and education, physician recruitment and training, treatment best practices and clinic operations.
Upon the closing of the Company’s previously announced acquisition of Emblem Corp. (TSXV: EMC, OTCQX: EMMBF) (“Emblem”), expected in Q1 2019 following satisfaction of previously announced transaction conditions, CannaPacific will leverage Emblem’s product innovation expertise, with a portfolio of high-margin derivate products including oils, capsules and sprays.
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