Business
Pharmagreen Signs MOU to Acquire a California Based Cannabis Company
Pharmagreen Signs MOU to Acquire a California Based Cannabis Company.
About this update from Pharmagreen Biotech Inc.
[{"type":"text","content":"\n CARSON CITY, NV, Aug. 12, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- 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. T...