KELOWNA: Citation Growth Corp. has executed a non-binding letter of intent to purchase state-of-the-art micro cultivation facility in British Columbia.
Citation’s management team anticipates the execution of a Definitive Agreement to purchase the business and micro license application on or before November 30, 2020 with the closing of the transaction anticipated to follow shortly thereafter upon the satisfaction of such terms and conditions precedent to the Closing, which are customary for transactions of this nature.
“This acquisition presents fantastic synergies that will not only enhance the quality of our cultivation output in Nevada, but will also give Citation a foothold in the burgeoning microcultivation space in BC,” commented CEO, Erik Anderson.
“Once the facility is fully built out and licensed in 2021, we will add immediate topline revenue and positive cash flow. The quality of workmanship in the facility is top tier and aligns with the micro grow demand in the BC cannabis market. We are excited to close this deal and add this acquisition to our portfolio”.
Citation’s management team believes this deal will:
1. Increase top line revenues and the company will benefit from the cashflow positive operations of 128417 BC. LTD by mid-2021;
2. Will allow the company to capture market share in Canada for high-quality craft cannabis and will set a platform for vertical integration “Farm-Gate” opportunities in BC; and
3. Will allow for additional retail synergies through the supply chain lines in the Canadian Cannabis Industry.
Citation will pay $4.0 million through a combination of shares and cash to be negotiated in the Definitive Agreement. The principals of 1208417 BC. LTD will remain with the company through the transition and indefinitely.
Citation Growth Corp. (CSE:CGRO) (OTCQX:CGOTF) is a publicly traded company that has been investing in the development of medical and recreational cannabis products since 2014. Citation has expanded its operating portfolio to include cultivation, production and retail offerings in key North American legal jurisdictions Nevada, California, Washington and British Columbia.