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Graphite Energy to Acquire Cannabis Cultivation Firm World Farms
Wednesday 15 May 2019

15 May 2019 - Canada-based mineral exploration company Graphite Energy Corp. (CSE: GRE) (OTC: GRXXF) (FWB: G0A) has entered into a letter of intent with Canada-based cannabis cultivation firm World Farms Corp. (WFC) regarding a proposed transaction to acquire all of the issued and outstanding securities of WFC, the company said.
Subject to the execution of a definitive agreement, the company proposes to acquire all of the issued and outstanding common shares of WFC in exchange for common shares of the company.
On or before the closing of the Transaction, it is proposed that WFC will complete an equity financing of common shares by way of a non-brokered private placement relying on the prospectus exemptions pursuant to National Instrument 45-106 or other applicable laws, rules and regulations to raise up to CDN 3.0m (USD 2.23m) at an intended price of CDN 0.30 (USD 0.22) per security.
The company will have until June 6, 2019 (or such other date as agreed to by the parties) to conduct due diligence on WFC, with a view to negotiating the terms of a definitive agreement in order to complete the transaction.
World Farms Corp. is a private company that is building a portfolio of low cost, scalable international cannabis assets in countries where the sale of either CBD or cannabis is legal.
WFC's current portfolio includes joint ventures in Italy, Croatia, South Africa, Uruguay and Jamaica.
Date Published: 15/05/2019
Target: World Farms Corp
Country: Canada
Deal Size: 2.23m (USD)
Sector: Agriculture/Forestry
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Buyer: Graphite Energy Corp