Canada House Wellness Group Inc., through its unit Abba Medix Corp., acquired all assets of a cannabis production license applicant, which includes 54 acres of property in Vegreville, Alberta.
Canada House Wellness said the acquisition will enable the company to develop a production facility to supply medical and recreational cannabis for sale in Western Canada.
The acquirer will pay C$1 million including C$160,000 in cash at closing and C$465,000 in cash or shares of the company, whichever the company chooses, within 120 days of closing.
Canada House Wellness will pay the remaining C$375,000 in the form of its shares, C$125,000 of which will be provided once the cultivation license for the facility is acquired and C$250,000 upon the first full harvest from the facility.
Chris Churchill-Smith, Canada House Wellness' CEO, said the facility's acquisition dramatically increases the company's production potential.
Canada House Wellness plans to complete phase 1 of the facilities' construction by the end of 2019, with full production expected by the second quarter of 2020.
The company said the accelerated growth in its production capabilities was supported by the C$25 million investment commitment from New York-based private equity firm Alumina Partners LLC.