Ottawa-based Tetra Bio-Pharma Inc. (TSX VENTURE:TBP)(OTC: TBPMF), a CBD-drug development company, announced a non-binding letter of intent with a private Canadian corporation to sell GrowPros, its wholly-owned cultivation-focused subsidiary, based on favorable on-going partnership conditions.
If the deal is approved, Tetra is expected to receive $350,000 and ensure an ongoing supply from the purchasing company of pharmaceutical quality cannabis for its pipeline of products under development. This will allow Tetra to focus on drug development and clinical trials of its pharmaceutical business.
In the proposed deal, Tetra would receive 15 million shares (33%) of the purchaser.
Proposed terms of the agreement in the LOI will require the purchaser to:
- move GrowPros’ late stage license application forward,
- give Tetra right of first refusal to future cannabis production by GrowPros,
- and build a 15,000 sf (1/3 acre) production facility on 145 acres of agricultural land in Venosta, Quebec. The property is approved for up to 34 acres of production space. Construction would begin in Q1 of 2018.
The transaction is subject to significant conditions, not the least of which is, signing a definitive agreement satisfactory to both parties.