- Cannabis company, Citation Growth (CGRO) has signed a definitive agreement with Indigenomix International for the sale of assets in Celista
- The company will sell a 40-acre property in British Columbia, plus the buildings and other assets on the land
- Indigenomix will pay Citation Growth a purchase price of C$8.5 million, which includes a non-refundable deposit
- The company expects the transaction for the assets to close before August 31, 2020
- Citation Growth (CGRO) remains unchanged and is currently trading at 9.5 cents per share
Cannabis company, Citation Growth (CGRO) has signed a definitive agreement with Indigenomix International for the sale of assets in Celista.
The sale is specifically for a 40-acre property, located in the small town of Celista in British Columbia. The sale also pertains to two buildings and other assets on the land.
Citation Growth first signed a letter of intent (LOI) with Indigenomix for the sale in early April this year. The initial LOI included a late-stage cultivation license application with Health Canada as one of the assets in the transaction.
The company originally intended to execute a definitive agreement for the transaction before June 15. However, the two parties later entered into a revised LOI, which terminated the first one, after missing this date.
This necessary extension was due to travel restrictions imposed as a result of the ongoing COVID-19 pandemic. At the time, the difficulties in travel resulted in Indigenomix needing more time to finalise its financing for the transaction.
Under the terms of the most recent LOI, Indigenomix will pay Citation Growth a purchase price of C$8.5 million for the Celista assets. This amount includes a non-refundable deposit.
The agreement also stipulates that Citation will help Indigenomix with regulatory requirements, intellectual property licensing for organic growing methodologies, and other material technologies.
The transaction is subject to the customary closing conditions and receipt of regulatory approval. The company expects that the transaction for the Celista assets will close before August 31, 2020.
Citation Growth (CGRO) remains unchanged and is trading at 9.5 cents per share at 11:18am EDT.