Things are moving in the right direction,
The Company Has Been Notified of Earning its 43% Share of the First Earn-out Milestone Payment
VANCOUVER, British Columbia, Sept. 08, 2021 (GLOBE NEWSWIRE) — Agra Ventures Ltd. (“AGRA” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF), a growth-oriented and diversified company focused on the international cannabis industry, is pleased to announce that, further to its news release dated April 6, 2021, the Company has received notice from Organigram Holdings Inc. (“Organigram”) that the first of three Edibles & Infusions Corp. (“EIC”) earnout milestones (the “First Milestone”) was satisfied on August 13, 2021.
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The First Milestone was satisfied upon the delivery of EIC-manufactured product to the Alberta recreational cannabis marketplace and triggered the aggregate release of $3,500,000 worth of Organigram common shares (the “Earnout Shares”) to the vendors of EIC. Specifically, AGRA is entitled to receive approximately 43 per cent of the Earnout Shares, or approximately $1,515,000 worth of the Earnout Shares, within 30 days of satisfying the First Milestone. The Earnout Shares are to be issued at the 5-day volume weighted average price of Organigram’s common shares as at the date of issuance.
Further, AGRA is eligible to receive approximately 43 per cent of an additional $9,500,000 of Organigram common shares, receivable upon the EIC business achieving certain earn-out milestones, as listed below:
$7,000,000 to be received in common shares of Organigram upon the successful earning of $15,000,000 in net revenue during the 12 months ended Dec. 31, 2022; and
$2,500,000 to be received in common shares of Organigram on the generation of $7,000,000 in adjusted earnings before interest, taxes, depreciation and amortization for the 12 months ended Dec. 31, 2022.
Management Commentary:
“The achievement of the First Milestone and related payment highlights the ‘Cannabis 2.0’ platform that was incubated by the Company. Also, it is a testament to the Company’s bench strength and to what AGRA hopes to achieve going forward. Management is squarely focused on AGRA’s three pillars of growth: Boundary Bay Cannabis in Delta, BC, Farmako GmbH in Germany, as well as the pursuit of an arrangement to enter the US cannabis market,” said Elise Coppens, CEO & Director of Agra Ventures.
