New Leaf Ventures’ regulatory approval for sale of cultivation assets
March 6, 2023 By Grow Opportunity Staff
(Globe Newswire) Vancouver — New Leaf Ventures Inc., a management and investment organization dedicated to evaluating, investing, and accelerating advanced stage operations in the North American cannabis sector, states that further to the news release dated June 28, 2022, the Washington State Liquor Cannabis Board (WSLCB) has approved the sale of the license holder’s cultivation license to the third-party asset management company.
This solidifies NLV’s sale of cultivation-related assets, through its wholly owned subsidiary New Leaf Equipment Co., providing an infusion of capital into current operations. The company and the license holder remain committed to the development, production, distribution and sale of cannabis retail brands and products.
A third-party asset management company has purchased the turnkey cultivation infrastructure and equipment and will lease the cultivation facility. New Leaf Enterprises (the license holder) will retain its processor license, allowing it to develop, manufacture, and distribute all cannabis-derived products in the State. New Leaf USA retains the option to purchase the processor license should ownership legislation in the state change in future.
The sale of all fixed assets and equipment related to the cultivation facility and release of the facility lease will allow New Leaf to focus its operations on the advancement of processing and distribution of high-quality consumer goods to retailers throughout the State. This transaction is a significant step forward towards aligning New Leaf Enterprises operations with New Leaf Ventures “House of Brands” core mission and business model. Gross sale proceeds to the company’s subsidiaries pursuant to the divestiture were US$266,797.
Additionally, in connection with the appointments of Mr. Garnett, Director and CSO and Mr. Medwid, President and COO, they have each been granted restricted shares rights (RSRs) in the amount of 600,000 RSRs and 1,400,000 RSRs respectively. Both grants are subject to a 24-month escrow release schedule with 20 per cent on date of grant and 20% every six months thereafter.
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