Cannara Biotech Inc. (“Cannara”) announced a buying group which includes Javaa Private Equity Inc. (“Javaa”) has collectively acquired a total of 85,003,250 common shares from FSD/FV Pharma Inc., the majority of which remain in escrow, stemming from Cannara’s go-public transaction a year ago. This $7.7 million transaction ensures a smooth transition of approximately 12% of Cannara’s issued and outstanding common shares.
Post transaction, FSD/FV Pharma holds no remaining interest in Cannara and Dr. Sara May, the President of FV Pharma Inc. will step down from the Company’s Board of Directors. The Company is evaluating alternative independent directors and will fill the vacancy in a timely fashion.
“The buying group, a combination of insiders and independent, third party investors who understand Cannara’s potential and the progress it has made since going public, are committed to the Company’s strategic plan of being a leader in Quebec’s cannabis landscape,” said Lennie Ryer, CFO of Cannara. “With last month’s license granted from Health Canada, we are now poised to begin full cultivation operations at Phase 1 of the Farnham facility, with an annual capacity of 20,000 kgs of premium, indoor grown cannabis.”
Cannara Biotech Inc., an emerging vertically integrated cannabis company focused on indoor cultivation, processing and medical sale of premium dried cannabis and cannabis derivatives under The Cannabis Act, is home to one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Québec. Leveraging Québec’s low electricity costs, Cannara Biotech’s Farnham Facility will produce premium indoor cannabis and cannabis-infused products for the Canadian and international markets.