July 22, 2020 By Grow Opportunity staff
Sunniva Inc. announced its Okanagan Falls production facility will be sold for $6.8 million to a B.C.-based investment company.
This is the third time in the past year that the Calgary-based company has entered into a sales agreement for its OK Falls Property. Earlier this month, “an independent real estate investment fund” notified Sunniva that it had cancelled its bid for the property. Before this, on June 8, a cannabis real-estate investment company named CannaPharmaRx Inc. terminated its $9-million deal to purchase Sunniva Medical Inc. along with the 114-acre property.
Sunniva had been seeking a buyer for the property since June last year. The company is hoping to use the property sale to boost annual filings while it faces cease trade orders from Ontario and British Columbia Securities Commissions for failing to file its financial statements.
Sunniva first purchased the property in June 2018 for $7 million. The 114-acre property, which is currently half built, was designed to house a greenhouse, a production facility and an administrative building. The company originally planned to invest $124 million in the site and it was estimated to create 220 full-time jobs.
The company was named in a lawsuit in connection with loans made by Matrix Venture Capital Management Inc. on Aug. 28, 2019 and Oct. 11, 2019 in the aggregate amount of $7 million.
The remedies sought by Matrix Venture Capital include a mortgage over the OK Falls property to secure payments of the amounts of the loans owed by Sunniva. Matrix claims that the company entered into a $3.4 million mortgage to finance the purchase of land and allegedly repaid $400,000 on Sept. 30, 2019 but is in default on the remaining balance.
On May 14, Matrix filed a notice of motion with the Supreme Court of British Columbia seeking a bankruptcy order for Sunniva.
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