Cansortium Inc. (CNTMF)

[MERCURIAL]

Cansortium Inc. Announces Management Agreement with Freedom Town Holdings, LLC for New Florida Cultivation and Production Facility


07/20/2020


MIAMI, July 20, 2020 /PRNewswire/ - Cansortium Inc. (CSE:TIUM.U) (OTCQB: CNTMF) ("Cansortium" or the "Company"), a vertically integrated cannabis company with operations in Florida, Texas, Michigan and Pennsylvania, today announced the signing of a Management Agreement (the "Management Agreement") with Freedom Town Holdings, LLC ("FT"), a multi-state operator that specializes in the production of high end cannabis flower, products, genetics and extraction, pursuant to which FT will provide management and operational consulting services for the Company's newly secured Florida cultivation and production facility in Zolfo Springs, Florida. The Management Agreement, which has a term of 7 years and compensates FT based on the level of facility production, will leverage FT's cultivation and processing expertise to expand Cansortium's cultivation in its home market of Florida, help accelerate Cansortium's opening of new dispensaries across the state, and ensure a consistent supply of high quality dry flower and extract products to Cansortium's growing patient base.

The 26,000 square foot Zolfo Springs facility is expected to commence operations during the first quarter of 2021 following approval from the Florida Department of Health and will complement the Company's existing Florida cultivation and production, including that of its principal facility in Tampa. The capital costs of the initial buildout of the Zolfo Springs facility will be funded by FT and repaid from the profit generated by the facility. The second phase buildout, which will be funded by cash flow from the facility, is anticipated to occur in 2022.

Neal Hochberg, Executive Chairman of the Board, commented, "We are very excited to partner with FT on this opportunity to expand our cultivation and production footprint in our home state of Florida. We believe the production from this facility will allow us to expand our product offerings, greatly enhancing our customer experience."

https://investors.getfluent.com/news-releases/news-release-details/cansortium-inc-announces-management-agreement-freedom-town