New 8-K Company Continues to acquire Cannabis Grow Capacity in Canada
Some good news in the 8-k
CANNAPHARMARX ANNOUNCES THE ACQUISITION OF A MINORITY INTEREST IN GREAT NORTHERN CANNABIS, A CANADIAN CANNABIS PRODUCER, AND THE APPOINTMENT OF DOMINIC COLVIN AS CEO AND CHAIRMAN OF THE BOARD
Company Continues to acquire Cannabis Grow Capacity in Canada
IRVINE, CA—[February 26, 2019]—CannaPharmaRx, Inc. (OTC Pink Sheets: “CPMD”) announced today it has completed the acquisition of a minority interest in GN Ventures, LTD., (“GNC”), an Alberta corporation, engaged in the development of Canadian cannabis cultivation facilities.. Under the terms of the stock purchase agreement the Company acquired approximately eighteen (18%) percent of the issued and outstanding securities of GNC for total consideration of 7,998,963 shares of CPMD common stock. Additionally, the Company acquired warrants exercisable to purchase an additional 2,500,000 shares of GN at an exercise price of CAD$1.00 per share.
GNC owns a 60,000 square foot cannabis cultivation and grow facility located on 38 acres in Stevensville, Ontario, Canada. Once completed, GNC estimates annual total production capacity from the Stevensville facility of up to12,500 kilograms of cannabis. When completed, GN believes it will begin cultivation activities and generate its initial harvest by the middle of 2019. Additionally, the plan is to increase cannabis production by building additional cannabis cultivation facilities on the excess land presently owned adjacent to the existing Stevensville facility, provided that additional funding for expansion can be obtained on commercially reasonable terms.
CPMD also appointed Dominic Colvin as Chief Executive Officer, President and Chairman of the Board. Mr. Colvin had previously been CEO, President and a director of CPMD until he resigned to avoid any appearance of conflicts of interest. Mr. Colvin stated, “I am very excited for the growth opportunities at CannapharmaRx. The Company’s objective is to become the premier holder of cannabis producing facilities in Canada. With the previously acquired Hanover property and minority ownership of GN Ventures, we are well on our way to achieving the production and ownership goals of the Company. We intend to acquire additional shares of GN along with other Canadian licensed producers and develop cannabis cultivation facilities which produce high quality cannabis at the lowest operational costs in the industry. Canada is still the place to be for cannabis production and we see a huge demand for years to come from the product we produce.”