Toronto-based Liberty Health Sciences Inc. (CSE:LHS) (OTC:LHSIF) announced it will acquire all of the outstanding shares of its wholly-owned subsidiary, 242 Cannabis, LLC, including 387 acres in Gainesville, Florida previously owned by Alico Citrus Nursery, LLC.
The property includes over 200,000 sf of greenhouses, head houses, tissue culture lab and processing facilities. Liberty plans to retrofit the facilities to include a 16,000 sf processing area for extraction and refining of cannabis oils.
Upon completion, Liberty will be one of the largest medical cannabis providers in Florida with an expected annual capacity of 12,000 kg. The retrofitted facilities will let Liberty expand production a year sooner than projected, to meet the growing patient demand in Florida.
The stock was up 13% yesterday on the news to $1.760.
The facility will produce vaporizer products including preloaded disposable pens, cartridges and pods. It will also have a commercial kitchen to produce edibles and chewable dosage forms, once the state has defined the regulations. Liberty will continue to offer capsules, oral solutions (tinctures) and topicals.
To pay for the deal, Liberty will issue 18,815,322 units, each comprising one common share at $1.6476 and one-half common share purchase warrant, exercisable at $2.07 per share for three years. The Company said the deal to close on or prior to February 9, 2018,
Liberty said the previously announced bought deal equity financing has been mutually terminated with the underwriters, Clarus Securities Inc. and AltaCorp. Capital Inc.