Business
Sunniva to Acquire Northern California Licensed Cultivation and Genetics Facility
Sunniva to Acquire Northern California Licensed Cultivation and Genetics Facility.
About this update from Sunniva Inc
[{"type":"text","content":"\nVANCOUVER, B.C., Oct. 17, 2018 (GLOBE NEWSWIRE) -- Sunniva Inc. (“Sunniva” or the “Company“) (CSE:SNN) (OTCQX:SNNVF), a North American provider of cannabis products and services, is pleased to announce that the Company has signed a non-arms length binding letter of intent dated October 16, 2018 with the Oakland Vision Project (“Vision”) to acquire all the issued and outstanding equity interests of the companies that comprise Vision (the “LOI”).  Vision is co-owned by Vinayak Shastry, Sunniva’s President of US Operations.  Vision operates a licensed cultivation facility located in Irvine, California (the “Vision Facility”).   Completion of the acquisition remains subject to a number of conditions including, among other things: the negotiation and execution of a definitive agreement between Sunniva and Vision, completion of due diligence and receipt of regulatory approvals, including approval of the Canadian Securities Exchange (“CSE”).\n The Vision Facility is lead by a seasoned group of cultivation professionals who have experience in both small and large-scale operations. The cultivation team is currently producing some of the highest quality pesticide free cannabis flower in California. The acquisition will provide Sunniva with: A proven cannabis cultivation team to manage Sunniva’s production operations in California Proof of concept of Sunniva’s strategy focussed on full vertical integration across the entire value chain, from seed to sale Current production capacity of ~1,600 lbs per year with development plans to scale production to ~8,000 lbs per year in 2019, with an estimated capital investment of $1.5 million and estimated production costs below $1.00 per gram Clean clones for onboarding into the Sunniva California Campus  Library of more than 20 proven genetic strains with on-site genetics lab for the development of future strains Premium flower and trim to launch high end Sunniva branded product lines “This acquisition will deliver full vertical integration in California that strategically enhances the value of the Sunniva brand.  Production from this facility will allow Sunniva to launch its first premium-quality craft flower brand with the assurance of large-scale production from this faci...