AgraFlora Organics and Liberty Leaf Form Joint Venture Company

Published: April 4, 2019

AgraFlora Organics and Liberty Leaf Form Joint Venture Company

AgraFlora Organics International Inc. and Liberty Leaf Holdings Ltd. announced that, further to the joint news release of September 20, 2018, the Companies have made significant advancement with respect to gaining entry into the medical cannabis market in the European Union and, as such, have formed a jointly owned Greek company, AgraLeaf SA (“AgraLeaf”), so as to formally capitalize on the opportunity. AgraFlora and Liberty Leaf will own an equal equity stake in AgraLeaf with specific details regarding the obligations of the Companies to be outlined in a shareholder’s agreement. AgraLeaf has established a team in Greece consisting of personnel with expertise in commercial horticulture, government affairs, legal and finance.

“The new joint venture company will provide access for our shareholders to participate in one of the largest medical cannabis markets in the world,” said Derek Ivany, President and CEO, AgraFlora Organics International Inc. “We have assembled an experienced local management team in Greece and I am confident they possess the skillsets necessary to ensure our success. I look forward to working with Will and the team at Liberty Leaf as we advance this significant opportunity to the mutual benefit of all stakeholders.”

“Having just returned from a due diligence trip, I am extremely impressed with the opportunities for large-scale cannabis cultivation that Greece affords,” said Will Rascan, President and CEO of Liberty Leaf. “AgraFlora has established themselves as capable operators in the burgeoning cannabis marketplace and we are excited about the prospects of working alongside their team as we pursue this exciting new venture in Greece.”

The fertile agricultural regions of Greece combined with relatively low-cost labor and property prices make it a prime locale for large-scale medical cannabis cultivation. In November 2018, Greece issued the first licenses to private companies for growing medicinal cannabis. As a gateway to the European Union, which is home to more than 500 million people, AgraLeaf will thus be granted access to this significant piece of the globalized cannabis market. Recent research reports by Prohibition Partners have estimated that the cannabis market in the EU may represent as much as €123 billion by 2028.