Agra Ventures Ltd. (CSE:AGRA, OTC:AGFAF) said that further to its news release dated April 6, 2021, it has received notice from Organigram Holdings Inc. that the first of three Edibles & Infusions Corp. (EIC) earn-out milestones was satisfied on August 13, 2021.
In a statement, Elise Coppens, CEO & director of Agra Ventures commented: “The achievement of the First Milestone and related payment highlights the ‘Cannabis 2.0’ platform that was incubated by the Company. Also, it is a testament to the Company’s bench strength and to what AGRA hopes to achieve going forward. Management is squarely focused on AGRA’s three pillars of growth: Boundary Bay Cannabis in Delta, BC, Farmako GmbH in Germany, as well as the pursuit of an arrangement to enter the US cannabis market."
The first milestone was satisfied upon the delivery of EIC-manufactured product to the Alberta recreational cannabis marketplace and triggered the aggregate release of $3,500,000 worth of Organigram common shares to the vendors of EIC. Specifically, Agra is entitled to receive approximately 43%, or approximately $1,515,000 worth, of the earn-out shares within 30 days of satisfying the first milestone.
READ: Agra Ventures receives test results for four successful cannabis batches from its Delta greenhouse
The earn-out shares are to be issued at the 5-day volume-weighted average price of Organigram’s common shares as of the date of issuance.
Furthermore, Agra is eligible to receive approximately 43% of an additional $9,500,000 of Organigram common shares, receivable upon the EIC business achieving certain earn-out milestones, as follows: $7,000,000 to be received in common shares of Organigram upon the successful earning of $15,000,000 in net revenue during the 12 months ended December 31, 2022; and $2,500,000 to be received in common shares of Organigram on the generation of $7,000,000 in adjusted earnings before interest, taxes, depreciation and amortization for the 12 months ended December 31, 2022.
Agra Ventures is a growth-oriented and diversified company focused on the international cannabis industry. The company is dedicated to the cultivation, distribution and marketing of high-quality cannabis and cannabis-infused products worldwide.
Agra’s primary asset in Canada is Boundary Bay Cannabis located in Delta, British Columbia, which is one of the largest cannabis greenhouse facilities focused on the cost-optimized cultivation of high-potency cannabis. Abroad, the company’s wholly-owned subsidiary, Farmako GmbH, is focused on becoming Europe’s leading distributor of medical cannabis. Farmako currently has active product distribution operations in Germany and expects to commence active operations in the United Kingdom in 2021.
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