Vancouver, British Columbia–(Newsfile Corp. – March 25, 2019) – TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or “the Company”) recently signed definitive documents to purchase for US$15 million a 196,000 sq ft vertically integrated facility in northern California as announced on March 20, 2018. Included in the purchase is a total of 5.567 acres of land and institutional grade packaging and extraction equipment. The Company retained the services of an independent third-party business valuation firm (the “Firm”) to determine the enterprise value of the proposed business to be conducted by the Company on the property. The Firm concluded with a valuation range of US$50 million – $75 million using two different valuation methods to reach their conclusion.
“We are very pleased with the outcome of this valuation and understand now that execution is the key,” said Jim Pakulis, CEO of TransCanna. “Our business initiatives are very clear and we look forward to getting the facility operational in the months to come.”
The total purchase price for the Property was US$15 million. The Company’s CEO paid the seller a US$250,000 non-refundable deposit to secure the property, which has since been reimbursed by the Company, and the Company will pay a US$8 million down payment from the proceeds of the Company’s over-subscribed brokered private placement once closed (see news releases dated February 20, 2019, and March 14, 2019). The seller of the building has agreed to a carryback note of US$6.750 million at 7% p.a. interest only for up to thirteen months, with an initial maturity date of October 15, 2019, subject to a six-month extension. See March 20th press release for additional terms.
For further information, please visit the Company’s website at www.transcanna.com.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a Canadian based company providing branding, transportation and distribution services, through its wholly-owned California subsidiaries, to a range of industries including the cannabis marketplace.
On behalf of the Board of Directors
Chief Executive Officer
Telephone: (604) 609-6199
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