Toronto-based Liberty Health Sciences Inc. (CSE: LHS) (OTCQX: LHSIF) announced today it will acquire all of the outstanding shares of 242 Cannabis Canada Ltd., whose wholly-owned subsidiary is buying 387 acres of land in Gainesville, Florida.
The property includes over 200,000 sf of greenhouses, head houses, tissue culture lab and processing facilities. Liberty plans to retrofit the facilities over the coming months to enable it to expand their production capacity a year sooner than planned to meet growing patient demand in Florida.
At the end of 2017, approximately 64,000 patients had registered with the state, an almost 300% increase since June 30, 2017.
Upon completion of the retrofit, Liberty will be one of the leading medical cannabis providers in the Florida market with an expected annual capacity of 12,000 kgs of medical cannabis. Use of the facilities as an approved cultivation facility for Liberty under its MMTC license is subject to inspections and/or approvals.
“This acquisition of nearly 400 acres of property shows Liberty’s commitment to provide patients with a consistent supply of high-quality cannabis to meet their medical needs,” said George Scorsis, Director and CEO of Liberty. “Our state of the art facilities will be equipped with the latest in industry leading lighting technology and process automation.”
The acquisition will be completed through transactions expected to close by February 9,2018, subject to standard due diligence.
To pay for the deal, Liberty will issue 18.8 million units, each being comprised of one common share of the Company and one-half common share purchase warrant. Each whole warrant will be exercisable at $2.07 for a period of three years.
Until the retrofit is completed at the new facility, Liberty will operate their existing 36-acre facility, also in Gainesville. Since acquiring this facility, Liberty has made improvements and expects to increase its growing capacity to 24,000 sf in early 2018.
Liberty Health is an investor and operator in the U.S. medical cannabis market. It has a background in highly-regulated industries, and expertise in becoming a low-cost producer.