Exactus Inc.'s board approved the acquisition of a 50.1% stake in Exactus One World LLC, which will be responsible for Exactus' initial efforts to pursue agricultural development, including farm soil preparation, planting, harvesting, transportation and drying.
According to a March 11 filing, Exactus One World is a newly formed limited liability company that will farm and process industrial hemp into cannabidiol and related products.
Glen Allen, Va.-based Exactus, which is developing point-of-care diagnostics and also pursuing opportunities in hemp-derived cannabidiol, will be responsible for funding, and the minority owners will be responsible for managing, servicing and operating the farm properties.
The company said it will make payments of $2.7 million through Oct. 1 to support costs for farming for the 2019 harvest.
Exactus acquired a 30% interest in Exactus One World and an additional 20.1% stake was acquired from existing members of Exactus One World. The purchase price for the 20.1% stake is $1.5 million in cash and the remaining $1.5 million in Exactus' restricted common shares.
In addition, Exactus is required to pay $300,000 in cash and issue 7.5 million common shares to members of Exactus One World. Exactus is also required to pay $700,000 and $500,000 in cash on April 20 and Sept. 1, respectively. On June 10, the company is required to issue restricted common shares worth $450,000 to the members.