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PharmaCan Capital Corp. is pleased to announce that it has signed a definitive Share Purchase Agreement (“SPA”) with 2468068 Ontario Inc. (“NWC”) for the sale of up to an 80% interest of In The Zone and for the sale of the associated real property. Concurrent with the signing of the SPA, NWC advanced $200,000 to PharmaCan bringing the total amount on deposit to $450,000. The parties have agreed to a September 30, 2015 closing date and upon closing PharmaCan will receive net proceeds of approximately $3.5 million. A further $1 million will be received upon the achievement of construction related milestones.
“The renovation of In The Zone is nearing completion and we anticipate requesting a Health Canada inspection for the purpose of reinstating the sale provision of ITZ’s MMPR license before the transaction closes,” said PharmaCan’s CEO Paul Rosen. “We have been working very closely with NWC to not only finalize this agreement, but also on the development of the property. With NWC’s expertise we have advanced the renovation of the existing facilities at In The Zone to near completion. Construction of significant expansion capacity will commence as early as October immediately after closing,” said Mr. Rosen.
We are very excited to be working with PharmaCan to build ITZ into a world-class producer of premium medical-grade cannabis,” said NWC’s CEO, Andrew Muroff.
Completion of the transaction is subject to a number of conditions and regulatory approval including Health Canada and exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all.
In other business regarding In The Zone, the Company and the In The Zone founders amended the November 6, 2014 purchase and sale agreement by replacing the issuance of 426,780 PharmaCan shares with a $300,000 cash payment. The 42,678 shares currently held by the vendors will be cancelled immediately and the 384,102 shares that are currently held in escrow will be cancelled upon their release.
About PharmaCan Capital Corp.
PharmaCan is a company in the business of investing in companies either licensed, or actively seeking a license, to produce medical marihuana pursuant to Canada’s MMPR. PharmaCan has a diversified portfolio of investments including investments in 5 of the 25 companies licensed by Health Canada to produce medical marihuana.
About New World Cannabis Inc. (NWC)
NWC is a private Canadian corporation with experienced management and industry operating teams and a global vision for advancing medical grade cannabis.
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