BC Craft Supply Retains Jordache Commodities Ltd. to Manage and Develop Medcann Facility

Published: May 10, 2021

BC Craft Supply Retains Jordache Commodities Ltd. to Manage and Develop Medcann Facility

BC Craft Supply Co. Ltd. announced that it has entered into an advisory and development agreement (the “Advisory and Development Agreement”) with Jordache Commodities Ltd. (the “Consultant” or “Jordache Commodities”) dated May 5, 2021 to manage and develop the Company’s Medcann facility located in Chemainus, British Columbia (the “Consulting Agreement”).

Terms of the Advisory and Development Agreement

In connection with the Advisory and Development Agreement, the Consultant will finance up to $2 million for the development of the Medcann facility (the “Advance”).

Under the terms of the Advisory and Development Agreement, the Consultant will manage the reconstruction of the Medcann facility, provide ongoing day to day operations of the facility including staffing, construction and operation budgets, provide recruitment of revenue contracts for the facility and such other duties as required by the Company.

The Advance will be partially satisfied by BC Craft with the issue of an aggregate of five (5) million common shares in the capital of the Company (the “Common Shares”) at an attributed aggregate value of $275,000. The Common Shares will be issued on the later of: (i) four (4) months and one (1) day from the effective date of the agreement; and (ii) the date of which the construction of the Medcann Facility is completed. The remainder of the Advance will be repaid from the net profits from the Medcann facility. Upon the full repayment of the Advance from the issuance of the Common Shares and the net profits generated from the Medcann facility, the Consultant and the Company will share in the profits generated from Medcann facility operations (49% for the Company and 51% for the Consultant) under a five year term, or until the parties mutually agree to terminate the agreement. The Company will also issue an aggregate of 2.5 million stock options (each a “Stock Option”) exercisable for a period of two (2) years from issuance with an exercise price of $0.10 per Stock Option. 1 million of the Stock Options will vest upon completion of the construction stage of the facility and commencement of initial operations, another 1 million of the Stock Options will vest upon Medcann realizing $250,000 in gross revenue and the remaining 500,000 Stock Options will vest upon receipt of a sales license amendment that allows recreational sales.

All securities issued will be subject to a 4 month and 1 day statutory hold period from issuance.

Jordache Perrin, President of Jordache Commodities states, “Jordache Commodities is pleased to be moving forward with this transaction, as it will accelerate domestic and international growth and support local craft growers in Canada”.

Matthew Watters, CEO of BC Craft stated, “In addition to restoring our Medcann facility, which will open up medical sales revenue lines for the Company, our new partnership with Jordache Commodities allows us to add the power of in-house manufacturing and processing to the services we provide. Launching this facility is a critical step in our journey to be the premier aggregator helping growers, brands, and innovative products go to market. We look forward to working with Jordache for the good of cannabis”.

For further information please contact Matthew Watters, Director, at (604) 687-2038.

Based in Vancouver, British Columbia, BC Craft Supply Co. has aggregated the best legacy-era talent from Canada’s craft cannabis industry, which boasts an international reputation. The team at BC Craft supports the most trusted cannabis cultivators in Canada to transition into their supply chain, bringing with them their unique cultivars and years of experience with the plant. In exchange for support with licensing, compliance and distribution, cultivators will sign on as a BC Craft supplier. This makes BC Craft uniquely positioned to be the premium cannabis brand in Canada.

BC Craft’s subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a license to sell medical cannabis products in Canada. Click here to connect with BC Craft Supply Co. on InstagramTwitterLinkedIn and Facebook, and click here to find more information on the Company.

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