AgraFlora Organics International Inc. (CSE: AGRA), a growth-oriented and diversified international cannabis company announced that it had sold its rights to AgraLeaf SA in Greece in exchange for common shares of Roughrider Capital Corp. ("Roughrider"). This represents 150 percent of the company’s original investment.
It's also worth noting that AgraFlora will soon boast the world's second largest cannabis cultivation operations under glass - at 2.1 Million Square Feet. Expected annual yield will be 250,000 KG. AgraFlora's anticipated completion is set for 2020.
With this deal, the company will take control 8 percent of the common shared of Roughrider. Included in the deal is a supply agreement with Roughrider's Greek pharmaceutical partner to purchase cannabis flower and oils for its pharmaceutical products.
In a statement, Derek Ivany, President & CEO, AgraFlora Organics International Inc. said that "Our new strategic relationship with Roughrider Capital and its European partners is a tremendous opportunity for AgraFlora to supply the world's second largest cannabis market: the European Union."
"The sale of our ownership in AgraLeaf SA allows our management team to focus solely on our Canadian operations and bringing the first phase of the Delta Greenhouse Complex online, which is projected for the third quarter of 2019. A supply agreement with Roughrider's partners in Greece will provide access to the Greek and ultimately EU cannabis markets for our high-quality cannabis flower and oils. We also envision extending our relationship by participating with Roughrider and its European partners in clinical studies on the use of cannabinoids for the reduction of high blood pressure and anxiety," Derek Ivany, President & CEO, AgraFlora Organics International Inc.
Earlier moves saw the company announcing its intention to enter the European Markets through investment with Liberty Leaf. This allowed the company to enter the European Union medical cannabis market and saw it acquire a team of horticulture, government affairs, legal and finance experts in Greece. Liberty Leaf has also agreed to sell its interest in AgraLeaf SA to Roughrider.
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