Kelowna, British Columbia–(Newsfile Corp. – October 7, 2020) – Citation Growth Corp. (CSE: CGRO) (OTCQX: CGOTF) (“Citation” or “Company”), a licensed multi-state Cannabis cultivator, producer and retailer, is pleased to announce that it has executed a non-binding letter of intent (“LOI”) on October 6, 2020 with 1208417 BC. LTD. DBA Laughing Turtle Farms (the “Vendor”) to purchase their state-of-the-art micro cultivation facility in British Columbia. Citation’s management team anticipates the execution of a Definitive Agreement (the “Definitive Agreement”) to purchase the business and micro license application on or before November 30, 2020 with the closing of the transaction (the “Closing”) anticipated to follow shortly thereafter upon the satisfaction of such terms and conditions precedent to the Closing, which are customary for transactions of this nature.
“This acquisition presents fantastic synergies that will not only enhance the quality of our cultivation output in Nevada, but will also give Citation a foothold in the burgeoning micro-cultivation space in BC,” commented CEO, Erik Anderson. “Once the facility is fully built out and licensed in 2021, we will add immediate topline revenue and positive cash flow. The quality of workmanship in the facility is top tier and aligns with the micro grow demand in the BC cannabis market. We are excited to close this deal and add this acquisition to our portfolio.”
Citation’s management team believes this deal will:
1. increase top line revenues and the company will benefit from the cashflow positive operations of 128417 BC. LTD by mid-2021;
2. will allow the company to capture market share in Canada for high-quality craft cannabis and will set a platform for vertical integration “Farm-Gate” opportunities in BC; and
3. will allow for additional retail synergies through the supply chain lines in the Canadian Cannabis Industry.
Terms of the Proposed Transaction
Citation will pay $4,000,000