Agraflora Ventures Ltd (AGRA)

[PotterBanker]

Wow!. Big material change for PUF.

Under a Letter of Intent signed on May 22, 2018 between PUF and Houwelings, the two parties have agreed to the following:
• A 50/50 joint ownership interest in PSC.
• Under a 15-year facility lease agreement, PSC will initially lease 3.9 HA (419.500 square feet) of Houwelings Delta facility with the right to increase growing area as industry demand increases up to 2.2 million square feet.
• Under a management agreement, Houwelings Propagation staff will manage cannabis propagation operations on behalf of PSC.
• PUF will commit up to $6 million in a non-interest-bearing capital loan to PSC for upgrades to the Houwelings greenhouse facility to be compliant with Health Canada guidelines and other capital improvements.
• PUF will pay for all license application costs which will be recoverable from future profits of PSC.
• Delivery of first plant orders is anticipated for the first quarter of 2019

PUF is in the process of preparing and finalizing a shareholders’ agreement, management agreement and a sublease agreement in relation to the LOI.

The Company will provide further details upon signing the definitive agreement which is currently in motion by both parties.

Not Fluff.

This should turn into real revenue much sooner than the AAA Heidelberg project.