TWEED (TWD) buyout ParkLane 350ksf MJ facility! OTTAWA, June 19, 2014 /CNW/ - Tweed Marijuana Inc. (TSXV: TWD) ("Tweed" or the "Company"), is pleased to announce the acquisition of Prime1 Construction Services Corp. ("Park Lane"), an applicant currently proceeding through the Health Canada review process to become a Licensed Producer under the Canadian Marihuana for Medical Purposes Regulations ("MMPR"). As a result of this acquisition, Tweed seeks to become the first geographically diversified, multi-location, multi-licensed public operation in Canada.
Acquisition Summary
The acquisition, which will add over 350,000 square feet of greenhouse facility located in Niagara-on-the-Lake, will complement Tweed's current 168,000 square foot indoor facility which is licensed to produce up to 15,000 kg of marijuana per year, while diversifying into a multi-platform producer with indoor and greenhouse production. Through this transaction, Tweed will bolster its ability to provide an industry leading selection of varieties and price points, and create license redundancy to provide investors and customers with enhanced security and reliability of production.
In consideration for the acquired shares in Park Lane, Tweed will pay $3,600,000 cash on closing and up to an additional $100,000 upon achieving certain milestones. Tweed will also issue up to 519,031 shares if and when specific milestones are achieved over the next 12 months. Tweed is optimistic that a portion of the purchase price will be eligible for traditional debt financing secured by the facilities and land owned by Park Lane.
"Tweed is pleased to announce the first material transaction that begins to consolidate the sector on the first anniversary of the issuance of the MMPR," commented Tweed co-founder and Chairman, Bruce Linton. "The opportunity for Tweed to become a geographically distributed and multi-Licensed Producer is extremely exciting and builds on Tweed's commitment to provide a reliable supply of the highest quality medicine in Canada. This acquisition, coupled with our medical education program and exceptional customer care team, positions Tweed to become a major force in an exciting and emerging market."
