Mr. James Pakulis reports
TRANSCANNA RECEIVES THIRD PARTY BUSINESS VALUATION OF US$50 MILLION - $75 MILLION RANGE FOR FACILITY ACQUISITION
Transcanna Holdings Inc. recently signed definitive documents to purchase for $15-million (U.S.) a 196,000-square-foot vertically integrated facility in northern California as announced on March 20, 2018. Included in the purchase is a total of 5.567 acres of land and institutional grade packaging and extraction equipment. The company retained the services of an independent third party business valuation firm to determine the enterprise value of the proposed business to be conducted by the company on the property. The firm concluded with a valuation range of $50-million (U.S.) to $75-million (U.S.) using two different valuation methods to reach its conclusion.
"We are very pleased with the outcome of this valuation and understand now that execution is the key," said Jim Pakulis, chief executive officer of Transcanna. "Our business initiatives are very clear and we look forward to getting the facility operational in the months to come."
The total purchase price for the property was $15-million (U.S.). The company's chief executive officer paid the seller a $250,000 (U.S.) non-refundable deposit to secure the property, which has since been reimbursed by the company, and the company will pay an $8-million (U.S.) down payment from the proceeds of the company's oversubscribed brokered private placement once closed (see news releases dated Feb. 20, 2019, and March 14, 2019). The seller of the building has agreed to a carry-back note of $6.75-million (U.S.) at 7-per-cent-per-annum interest only for up to 13 months, with an initial maturity date of Oct. 15, 2019, subject to a six-month extension. See March 20 press release for additional terms.
About Transcanna Holdings Inc.
Transcanna Holdings is a Canada-based company providing branding, transportation and distribution services, through its wholly owned California subsidiaries, to a range of industries, including the cannabis marketplace.
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