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Newstrike's UP Cannabis Acquires Greenhouse Facility

July 13, 2017

 

Newstrike Resources Ltd. (TSX VENTURE:HIP) just announced that its wholly-owned ACMPR licensed producer subsidiary, Up Cannabis Inc. has agreed to acquire a greenhouse facility in Ontario. 

 

About the Facility 

 

  • Approximately 200,000 square foot, with 160,000 of that space dedicated to production 

  • Situated on 16.6 acres of land

  • Potential to add an additional 140,000 sq. feet of production space

  • Company estimates that this facility when online could increase production capacity to nearly 15,000 kg/year

  • UP plans to develop and apply for licensing of this facility under the ACMPR in addition to its existing licensed facility

 

Terms of Deal & Related Financing 

 

  • The purchase price of ~$7.3 million CAD will be financed in part through a $4.0 secured acquisition facility. The balance of the purchase price will be funded from the company's existing capital. 

  • This secured acquisition facility has been committed to the Company by a syndicate of Newstrike officers, directors and shareholders led by Beechhill Capital Corp.

  • The loan is for a term of just under seven months, expiring on February 15, 2018 and includes simple interest at the rate of 15% per year (1.25% per month) with monthly interest-only payments during the term and repayment in-full at the end of term.

  • The loan can be repaid early with the addition of a cancellation fee of 1.0% of all amounts outstanding at the time of cancellation. 

  • The loan is secured by a general charge over the assets, inventory and undertakings of UP Cannabis Inc. and upon completion of pending first-mortgage financing for the Facility, a subordinated charge on the 16.6 acres of land included in the Acquisition.

  • The Company expects to complete the acquisition and all related financings by July 31, 2017.

 

Conclusion

 

The Daily Marijuana Observer is working on a marijuana stock profile for Newstrike Resources. In the meantime, be sure to subscribe to one or more of their free email newsletters and check out their marijuana stock database

 

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D/M/O

 

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