AREV Brands International Ltd (CSE:AREV) has reached a deal to acquire a pair of parcels of rural property in Sorrento, British Columbia for the cultivation of medicinal marijuana plants.
The two properties acquired as part of an agreement with MJ Laboratories are located along Blind Bay Road and the Trans-Canada Highway in Sorrento.
The purchase price is at the land's appraised value of C$1.215 million of which $523,943 of the price is payable by way of a convertible debenture issued by the company with interest at 8% per year. The balance has been paid in cash.
The outstanding principal amount and outstanding accruing interest of the convertible debenture shall be convertible into shares of Arev at the price of C$0.30 per share.
The property is comprised of 13.33 acres north of the Trans-Canada Highway and 14.08 acres south of the Trans-Canada Highway. AREV’s team has spent the last year preparing this 27.38 acre site for breeding, cultivation and processing medicinal plants. The site is being prepared to partner with cannabis companies looking to expand to western Canada.
AREV shares traded 1.6% higher to hit C$0.315 in Friday’s morning trading session.