Captiva Verde to acquire cannabis licences in Mexico
FURTHER TO Captiva Verde Land Corp.’s news releases dated Nov. 1 and Nov. 5, 2018, whereby the Supreme Court of Mexico has legalized cannabis for all forms of adult use and the proposed issuance of one million common shares of Captiva Verde Land Corp., payable to S&G upon approval of the Canadian Securities Exchange, where S&G will be responsible for the infusion and distribution of finished cannabis products for the local and export market, Captiva has reached an agreement dated Jan. 10, 2019, with S&G Procesos Industriales SA de CV of Mexico for the acquisition of cannabis licences, related land and facilities in the Republic of Mexico once the defined regulations are finalized by the newly elected administration. S&G will receive from Captiva a M&A (merger and acquisition) fee of 7 per cent of the proceeds to be paid by Captiva for such licences, land and facilities.
The final price will be settled when the regulations by the newly elected administration are complete and Captiva will seek financing at the project level by credit facilities with repayments from a percentage of product sales. Captiva will provide updates as the regulations mandated by the Supreme Court are finalized. Law requires the administration to have the regulations in place within 90 days of the Oct. 31, 2018, ruling, but Captiva expects some delays within the administration.
The new administration may challenge any licences issued by the previous administration that were publically disclosed last year by other companies, therefore Captiva will be very careful to follow any new format and policy adoption. Jeff Ciachurski, chief executive officer of Captiva Verde, stated: “We are very excited to be working with S&G on this development. Mexico offers the ideal growing conditions, market awareness and long history of cannabis production to satisfy the increasing acceptance of cannabis as a wellness product.” About Captiva Verde Land Corp.
Captiva Verde Land is a sustainable real estate company that invests in assets that contain green residential communities, disruptive manufacturing facilities, organic food production and legal cannabis operations.
We seek Safe Harbor.
Michael Manford Boyd, Jeffrey Joseph Ciachurski, Orest Kostecki, James Taylor
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