VANCOUVER: Pac Roots Cannabis Corp. announced the execution of a binding letter of intent to form Rock Creek Farms, a proposed 100 acre commercial hemp operation, slated for production this spring in Rock Creek, British Columbia.
On May 29, 2020, PacRoots entered into a binding letter of intent with a private British Columbia company (BC Co.) for the formation of the Rock Creek Farms joint venture, which will be owned 60% by Pac Roots and 40% by BC Co. PacRoots contribution to the joint venture will be an aggregate of $450,000 in capital, of which $100,000 was funded upon the execution of the letter of intent.
BC Co. will contribute two commercial leases for over 100 acres of growing space, consulting services, cultivation equipment, agricultural infrastructure and intellectual property relating to commercial scale hemp operations and proprietary biomass storage techniques. Profits generated from the joint venture will be distributed first to PacRoots until its capital contributions have been repaid and thereafter in accordance with the interests in the joint venture held by the parties.
It is anticipated that the letter of intent will be replaced with a formal joint venture agreement governing the operations of Rock Creek Farms on or before June 30, 2020. BC Co. is controlled by Marc Geen, Alexander Kaulins and M&J Orchards, a Geen family company and has provided a commercial lease to BC Co. for 50 acres of M&J owned land, with the remaining 50 acres under commercial lease through Speakeasy Cannabis Club. Rock Creek is a well establish agricultural mecca situated in British Columbia’s ’Golden Mile’ in the South Okanagan Valley.
It is celebrated for its ideal climate conditions, honouring this region’s tradition of excellence and a family legacy that has grown here for more than 120 years. PacRoots is delighted to be involved with such a rich heritage and years of agriculture expertise to apply to this 100-acre CBD Hemp Project. In accordance with the Industrial Hemp Regulations of the Cannabis Act (Canada), an industrial hemp license from Health Canada was issued on May 22nd, 2020 for the addresses relating to the acreages noted above. The license allows the collective to cultivate, sell, import, export, possess and process industrial hemp until March 15th, 2021.
“This a major entrance for PacRoots to be positioned to generate cash flow from the 2020 summer growing season; representing the Company’s first production cycle. The Company is thrilled to offer this opportunity to its shareholders to be exposed to such a substantial outdoor project accompanied by industry leading expertise in one of Canada’s preeminent growing regions,” said President and CEO, Patrick Elliott.