Vancouver, British Columbia-based AgraFlora Organics International Inc. said it signed a binding letter of intent to acquire all of Organic Flower Investments Group Inc.'s assets.
Under the proposed deal, AgraFlora will issue 1.15 shares for every Organic Flower share.
The transaction includes Organic Flower's 20% interest in the Delta greenhouse complex, domestic downstream and product formulation operations, along with the rights to a trans-European distribution network of retail outlets and pharmacies.
The Delta greenhouse is a 2.2 million-square-foot complex intended to be a large-scale facility able to produce up to 175 million grams of dried cannabis flower. The acquisition of Organic Flower will bring together 70% interest in the complex under AgraFlora's ownership.
Organic Flower, also based in Vancouver, British Columbia, is an investment holding firm which specializes in providing early-stage financing to companies in the bio-medical, pharmaceutical and naturopathic industries, including the medical and recreational cannabis markets.
Through its acquisition of Delta Organic Cannabis Corp. in March, Organic Flower gained control of 44,582,040 common shares, or roughly 11.2% of the outstanding common shares, of AgraFlora Organics due to Delta Organic's equity participation and earn-in agreement with AgraFlora.