WEST KELOWNA, BC--(Marketwired - June 07, 2017) - Capha Pharmaceuticals Inc. ("Capha" and/or the "Company") is pleased to announce that it has signed a Letter of Intent ("LOI") with Patel Holdings Ltd. to purchase 100% of the shares of AgriForest Bio-Technologies Ltd. ("AgriForest"), a plant bio-technology company located in Kelowna, BC, Canada's picturesque Okanagan Valley. AgriForest's tissue culture micropropagation technology offers a unique opportunity of producing large quantities of new plant varieties in an environmentally sustainable way in a short period of time. "The utilization of this technology places Capha in a very unique position within the cannabis industry sector" stated Kyle Remenda, President.
The LOI also grants Capha an option to purchase a 12 acre land parcel which includes a 5,000 square foot state-of-the-art tissue culture laboratory located in Kelowna, BC. (the "Facility"). Included in the purchase of AgriForest is 50,000 square feet of greenhouse space and the work in progress plant inventory.
Under the terms of the LOI, Capha will purchase AgriForest for $1.8 million payable over a three year period. The Company also has an option to purchase the Facility for $2 million for a period of three years from the closing of the transaction with the Company providing a $100,000 non-refundable deposit at closing. Capha has until June 30, 2017 to complete due diligence. The Company will be preparing a formal agreement and the parties expect the transaction to close no later than July 31, 2017.
For further information please contact Kyle J. Remenda at 778-754-3000.
ON BEHALF OF THE BOARD OF DIRECTORS
"Kyle J. Remenda"
Kyle J. Remenda
President & COO
Contact Information:
Kyle J. Remenda
778-754-3000