Adam Jackson
AgriCann Solutions Corp. announced Monday that it acquired Newline Ventures Inc., a strategic move set to grow its cannabis operations across Canada.
Under terms of the deal, AgriCann paid $165,000 in cash and dispensed more than 38 million shares. Of these, 37.8 million shares were specifically linked to the acquisition, and 794,329 shares were compensation for an independent consultant’s finder’s fee.
Newline shareholders earmarked more than 11 million of these shares to back AgriCann’s long-term incentive plan, which rewards key company executives.
Headquartered in Lake Country, British Columbia, AgriCann operates Craft Nurseries Canada Ltd., a Health Canada-licensed cannabis nursery. With the addition of Newline, which is based in nearby Vernon, the company bolsters its expansion blueprint.
The deal comes on the heels of AgriCann’s recent private placement and pushes the company’s total outstanding shares to more than 105 million.
Key highlights of the deal include:
- Newline holds essential licenses from Health Canada, allowing vertical cannabis operations from cultivation to sales.
- Newline’s facility, built to advanced specifications, can handle bigger production volumes, enhancing AgriCann’s operational capabilities.
- British Columbia legislation allows federally licensed nurseries, such as AgriCann, to directly deliver cannabis products to retailers, streamlining their supply chain.
The acquisition marks a milestone for AgriCann that could lead to increased production, broader market reach, and reduced operational costs.
“The acquisition of Newline expands the company’s strategic initiatives and business model with a focus on launching innovative flower products through agreements with cannabis cultivators throughout Canada,” AgriCann said in a statement.
“Through this initiative the company expects to provide exceptional brands of premium cannabis product, highly desirable to discerning consumers, by ensuring a constant secured supply, thereby leveraging the company’s partners’ existing infrastructure.”
