Mr. Mike Withrow reports
AREV INTERNATIONAL BRANDS LTD. ANNOUNCES FOCUS AND ROLL OUT IN CALIFORNIA
Arev Brands International Ltd. has entered into a binding letter of intent with LB Anaheim Street LLC and LBC Integrated Growers LLC, two companies organized under the laws of California.
LB Anaheim Street owns a 5,300-square-foot facility, which is located minutes from the Port of Long Beach, and holds the highly coveted Type 7N and shared-use commercial cannabis volatile manufacturing licence used for
volatile and non-volatile solvent extraction,
infusion processing (including edibles, topicals and beverages), packaging and labelling, and a Type S shared-use
kitchen for producing edibles.
LBC Integrated Growers is a 100-acre, AG II-zoned
cannabis and
hemp
cultivation
property in Santa Barbara
county, California.
The Type 7N licence has a tetrahydrocannabinol canopy size
limited to 30,000 square feet per 100-acre parcel. Cannabidiol canopy
sizes are currently unlimited.
Using BC Bud Depot's advanced genetics, Arev will plant a short-season crop of auto-flowering, high-tetrahydrocannabinol feminized seeds in March of each year. This will yield a flowering crop in a period of eight weeks. A second high-tetrahydrocannabinol crop of elite proprietary genetics will then be planted in May for harvest in September. High-yielding cannabidiol will be harvested from a single annual planting of feminized
hemp seeds. The biomass yield will be supplied to the Long Beach location and the
entire multicrop yield is to be prepurchased by LB Anaheim Street.
Mike Withrow, chief executive officer, commented: "This agreement is a direct result of the tireless work Silvertree has done on behalf of Arev. It is a perfect fit and meets our mandate to enter into partnerships with licence holders who will continue to operate and join the network of licences in the state of California."
Under the terms of the agreement, as soon as practicable following the parties' satisfaction or waiver of the conditions to closing, the parties will work together in good faith to negotiate and finalize the acquisition agreement on or before June 1, 2019. The obligations of the selling party and the buyer under the transaction documents are conditioned solely upon satisfaction or waiver of the following conditions: (i) on or prior to the date of closing, the buyer shall obtain all necessary governmental, regulatory and court consents, permits, licences, waivers and approvals to operate the businesses; (ii) compliance with preclosing covenants and continuing accuracy of each party's representations and warranties in all material respects; (iii) obtaining all consents and approvals of third parties and the Canadian Securities Exchange; and (iv) on or prior to the date of closing, the buyer shall provide written confirmation of the completion of a satisfactory due diligence investigation, including, but not limited to, confirmation that the selling party owns all right, title and interest in and to the operating assets of the companies. The purchase price will be based on a fair market valuation report prepared by RwE Growth Partners to be determined at a later date, but before the finalization of the acquisition
agreement. Such valuation report shall be paid for by the buyer.
About Arev Brands International Ltd.
Arev Brands International produces and delivers functional compounds and ingredients from its world-class extraction systems. Arev is revolutionizing the current delivery method of terpenes, cannabinoids and flavonoids. These premium ingredients and formulations are used in products targeted for sale in the natural health, medical, functional food, nutraceutical, sport nutrition and bioceutical markets. Arev innovates through extraction to produce extracts from specific selected plant and exude from trees that address five areas of health, including anxiety, pain management, insomnia, central nervous system disorders and libido.
We seek Safe Harbor.
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