Ikänik Farms closes on $3 Million to build out four indoor cultivation bodegas in Bogota, Colombia
Ikänik Farms is multi-national operator with a medical grade indoor cultivation facility and laboratory (Pideka) in Colombia which holds GMP-PHARMA and (GACP) Good Agricultural and Collection Practice certifications, and retail operations in California
Ikänik Farms, Inc. (CSE: IKNK.U) (FSE: DFMA) (the "Company" or "Ikänik Farms") is pleased to announce the completion of the first tranche of a non-brokered private placement of 20,000,000 subordinate voting share units of the Company (the "Units") with Visualiza Business SL (the "Investor") at a price of USD$0.15 per Unit for aggregate gross proceeds of USD$3,000,000. Each Unit consists of one subordinate voting share (a "Share") of the Company and one-quarter of one Share purchase warrant (each, a "Warrant"). Each whole Warrant will entitle the holder thereof to acquire an additional Share (each, a "Warrant Share") at a price of USD$0.30 per Warrant Share for a period of two years. The Shares, Warrants and, if applicable, Warrant Shares will be subject to a statutory four month hold period.
The Investor will be entitled to appoint two independent directors to the Company's board of directors (the "Board") to fill the vacancies created by the resignations of Mr. Brian Baca and Mr. JJ Thomas from the Board. Following this, the Board will consist of three independent, non-executive directors and three executive directors.
Visualiza Business SL. is an integrated management finance company with operating businesses in technology, leisure tourism, health, housing and communications across Spain. "We are proud to invest in the Company we believe has the strongest business model and the most effective indoor crop structure to supply the medicinal cannabis market in Europe" says Jose Ramón García Gonzalez, CEO Visualiza Business SL.
The use of the proceeds from the issuance of Units will go directly to further the completion of four indoor cultivation Bodegas at the Company's wholly owned subsidiary Pideka SAS ("Pideka") in Bogota, Colombia and general operating expenses. The Company is aiming to complete a second tranche of the non-brokered private placement of Units for $3M in the near future.
"Pideka is on track to complete the construction of its 80,000 square foot, EUGMP certified facility with triple stacked grow rooms by Fall 2022, adding 9.8 tons to our annual output with an estimated annual production capacity of approximately 10.8 tons of THC cannabis flower said Mr. Sanz de Madrid, interim CEO. "We have been permitted to cultivate a total of 135,000 plants and derivatives for commercial exportation to the European Union for medicinal purposes and eligible for use in magistral formula nationally and internationally amongst participating LATAM countries" continued Mr. Sanz de Madrid.
"This strategic investment is an important step to secure forward sales contracts for bulk pharmaceutical grade THC cannabis flower from leading global cannabis operators and our aim to be a trusted pharmaceutical supplier for psychoactive cannabis flower" said Mr. Sanz de Madrid.
About Ikänik Farms
Ikänik Farms is multi-national operator with a medical grade indoor cultivation facility and laboratory (Pideka) in Colombia which holds GMP-PHARMA and (GACP) Good Agricultural and Collection Practice certifications, and retail operations in California.
SOURCE Ikanik Farms Inc.