Emblem Corp. (OTCBB: EMBBF) announced on July 26th that the company has signed a non-binding Letter of Intent (LOI) to acquire Natura Naturals Inc. (Natura). The LOI states that Natura will receive $25 million in cash, $12.5 million in mortgage financing, and over 26,000,000 shares of Emblem common shares for all of the issued and outstanding Natura securities.
Natura is a Canadian company that operates a 662,000 sq. ft. facility in Leamington, Ontario. After a phase of construction upgrades to the facility the estimated yield of cannabis is 15,000kg in 2018. When the facility is completed sometime in 2019 the expected yield from the facility’s greenhouse is 70,000kg per year.
Emblem has already entered into a supply agreement with Natura for 3,000kg per year. The company also made a $3 million equity investment into Natura Naturals.
The LOI agreement is subject to the negotiation and final terms of another defined agreement with required regulatory approvals.