- CVGR anticipates closing the transaction within 60 days
- Terms of the deal call for the new landlord to finance required buildout and capital improvements
- CVGR has a seed-to-retail model designed to grow and produce high-quality cannabis extracts and edible products
City View Green Holdings Inc. (CSE: CVGR) hopes to close on its letter of intent (LOI) for a purchase leaseback transaction of its Brantford, Ontario, facility and property within 60 days. Terms of the LOI call for the new landlord to finance the buildout and capital improvements required for CVGR to obtain Health Canada licenses. After the licenses are obtained, CVGR anticipates creating an operational cannabis grow-and-extraction facility (http://ibn.fm/Iqhya).
The agreement notes that CVGR would exercise its option to purchase the Brantford property then transfer that option to a financier. CVGR would then enter a five-year lease with a five-year renewable term. The company would have the right of first refusal to purchase the facility and property if the new owner decides to sell.
“This is a nondilutive way for us to finance and finalize the required buildout of the Brantford facility,” CVGR CEO Ian MacDonald said in a news release. “We are confident we have established the framework for a mutually beneficial outcome with the financier. We hope to have this deal closed within the next 60 days, and our current buildout initiatives are proceeding as planned.”
Toronto, Ontario-based CVGR is a vertically integrated seed-to-sale cannabis company planning to grow high-quality cannabis and produce extracts. The company anticipates producing edible products, distillates and water-soluble products for the beverage market, once those products are legalized. CVGR is focused on becoming a diversified company that will potentially acquire targets in the cannabis industry.
For more information, visit the company’s website at www.CityViewGreen.ca
NOTE TO INVESTORS: The latest news and updates relating to CVGR are available in the company’s newsroom at http://ibn.fm/CVGR