TORONTO and DENVER, Oct. 04, 2019 (GLOBE NEWSWIRE) — PRESS RELEASE — MJardin Group, Inc., a cannabis producer, has announced that, subsequent to its recently announced non-binding letter of intent (LOI) with Peguis First Nation in connection with its Warman cultivation facility located in Winnipeg, Manitoba, the company has entered into an agreement whereby Peguis has agreed to pay the full amount of the purchase price in advance of the closing of the transaction pursuant to a promissory note.
MJardin has received the C$11 million payment from Peguis, which immediately allows the company to commence Phase 2 construction and expedite the path to full production of the Warman facility.
On Aug. 28, 2019, MJardin announced the signing of a non-binding LOI with Peguis concerning a joint venture (JV) in connection with the operation and ownership of its Warman cultivation facility. Under the terms of the agreement, Peguis (51%) will purchase existing land and buildings from MJardin (49%) for C$11 million and execute a concurrent long-term lease back to the JV. Peguis will additionally fund the capital expenditures required to complete Phase 2 of the facility for approximately C$20.5 million.
Design plans for the Warman facility were released last month and include a hybrid facility encompassing indoor and greenhouse production capacity, along with full EU GMP certified extraction, processing and packaging capabilities. Phase 2 of the build-out will see the facility reach production capacity of approximately 4,500 kg of high-quality dried flower and 800 litres of bulk oil for use in refined products by Q2 2020.