Pharmagreen Signs MOU To Acquire A California Based Cannabis Company
Currently, management is in the process of completing its due diligence
Pharmagreen Biotech, Inc., (OTC PINKS: PHBI), is pleased to update its shareholders on the company’s developments and progress. Our business development has reached the next milestone with the signing of an MOU (Memorandum Of Understanding), on July 25, 2021, to acquire all the assets (includes property, structures and cannabis licences) and further develop a state of the art flowering greenhouse of approximately 12,000 sq ft or the maximum allowed square footage by California State and Regional County.
WHEREAS, the to be acquired company is the holder of a Provisional Cannabis Cultivation License to be transferred to a newly formed entity, for the purpose of operating in the cannabis industry as a wholly-owned subsidiary of Pharmagreen under Seller’s management;
WHEREAS, Pharmagreen is prepared to make substantial investments in the wholly owned subsidiary in order to increase its sales, profitability, and market share, by construction of new assets on the 12-acre property located in Northern California;
WHEREAS, Pharmagreen has a further option for up to seven and a half years to acquire an additional 120 acres or more of land for further business expansion and development.
WHEREAS, the parties agreed that the total purchase price shall be $2.4 Million (a combination of cash and shares). The target acquisition comes with a distribution and sales network and has existing sales. Due to a non-disclosure agreement and respect to the privacy of the principals of the target company, further details will be provided upon the signing of a definitive agreement.
Currently, management is in the process of completing its due diligence with the target of having a definitive agreement soon thereafter. Upon signing and once funds have been obtained, Pharmagreen will start the immediate process for the construction of a state-of-the-art cannabis flowering greenhouse utilizing the latest IofT (Internet of Things), latest technologies to produce highest quality THC flower and biomass and maximize the square footage for production. With this construction completed, estimated to take about 5 months from start to finish, we are planning to increase the current revenues of $500,000 per year to over $10 Million annually with 4 crop rotations per year.
To manage this high scale and high-quality production facilities(s) we are very excited to be working with the current individual who is a one of a kind, third generation Grand Master Grower of cannabis. His grandfather, a former biologist/botanist, planted the first cannabis plant in 1953; his father continued the tradition and further developed the family skill sets with breeding some of the most desired strains in the industry. So as a young lad, he had the opportunity to absorb and learn the skill sets for cultivating cannabis that very few people possess.
Additionally, upon signing of the definite agreement and once funds have been obtained, the company plans to immediately start the application process with the State and County for a nursery licence for the production and sale of tissue cultured starter plantlets for our greenhouse(s) operations and to supply the local cultivators in California. The company intends to build a maximum allowable size facility.
“We have reached the next milestone of Pharmagreen’s business development with this MOU for acquisition and business development. We have selected a region that is the largest state economy in U.S. and ranks fifth in the world and Northern California is considered to be God’s country for cannabis cultivation. Also, to be one of the best we have to have the best on our team and we certainly have that. Partnering with a third Generation Grand Master Grower and cultivating in state of art facilities with the best starter plantlets is the ultimate formula for success,” believes Peter Wojcik, CEO of Pharmagreen. “And this is just the beginning as we will also start the application process for the development of a Cannabis Biotech Complex for the production of tissue cultured starter plantlets,” concluded Mr. Wojcik.
About Pharmagreen Biotech Inc.
Pharmagreen Biotech, Inc., is a publicly traded (OTC PINKS: PHBI) company. Pharmagreen is a company focused on the CBD hemp industry for the production and supply of starter plantlets through a proprietary tissue culture process with the opportunity to become one of the largest players globally. Pharmagreen’s mission is to advance the technology of tissue culture science and to provide the highest quality 100% germ free, disease free and all genetically the same plantlets to CBD hemp farmers and other flora while offering full spectrum DNA testing for plant identification, live genetics preservation using tissue cultures in low temperature storage for all plant species; extraction of botanical oils mainly CBD oil, and to deliver laboratory based services to the North American Cannabis and agriculture sectors. For further information on the company please visit www.pharmagreen.ca
Safe Harbor Statement
This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company’s actual results to differ materially from those projected in such forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward looking statements include: our inability to obtain additional financing on acceptable terms; risk that our products and services will not gain widespread market acceptance; inability to compete with others who provide comparable products; the failure of our technology; the infringement of our technology with proprietary rights of third parties; inability to respond to consumer demands; inability to replace significant customers; seasonal nature of our business. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements. When used in this document, the words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential,” and similar expressions may be used to identify forward-looking statements.
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