AREV Brands International Ltd. (CSE: AREV), is pleased to announce it has entered into a Binding LOI with LB Anaheim Street LLC, a company organized under the laws of California, USA (“Anaheim”) and LBC Integrated Growers LLC, a company organized under the laws of California, (collectively, the “Companies”).
LB Anaheim Street LLC owns a 5,300 square foot facility minutes from the Long Beach Port and holds the highly-coveted Type 7N and shared-use commercial cannabis volatile manufacturing license used for volatile and non-volatile solvent extraction, infusion processing (including edibles, topicals and beverages), packaging and labeling, and a Type S shared use kitchen for producing edibles.
LBC Integrated Growers LLC is a 100 acre cannabis and hemp cultivation AG II zoned property in Santa Barbara County, California. The Type 7N License has a THC canopy size limited to 30,000 square feet per 100 acre parcel. CBD canopy sizes are currently unlimited.
Using BC Bud Depot’s advanced genetics, AREV will plant a short-season crop of auto-flowering, high-THC feminized seeds in March of each year. This will yield a flowering crop in a period of eight weeks. A second high-THC crop of elite proprietary genetics will then be planted in May for harvest in September. High-yielding CBD will be harvested from a single annual planting of feminized hemp seeds. The biomass yield will be supplied to the Long Beach location and the entire multi-crop yield is to be pre-purchased by LB Anaheim Street LLC.
Mike Withrow, CEO, stated, “This agreement is a direct result of the tireless work Silvertree has done on behalf of AREV. It is a perfect fit and meets our mandate to enter into partnerships with license-holders who will continue to operate and join the network of licenses in the State of California.”
Under the terms of the agreement, As soon as practicable following the parties’ satisfaction or waiver of the Conditions to Closing (the “Closing”). The parties will work together in good faith to negotiate and finalize the Acquisition Agreement on or before June 1, 2019. The obligations of the Selling Party and the Buyer under the Transaction documents are conditioned solely upon satisfaction or waiver of the following conditions (collectively, the “Conditions to Closing”): (i) on or prior to the date of Closing the Buyer shall obtain all necessary governmental, regulatory and court consents, permits, licenses, waivers and approvals to operate the businesses; (ii) compliance with pre- closing covenants and continuing accuracy of each Party’s representations and warranties in all material respects; (iii) obtaining all consents and approvals of third parties and the Canadian Securities Exchange (the “CSE”); and (iv) on or prior to the date of Closing the Buyer shall provide written confirmation of the completion of a satisfactory due diligence investigation, including, but not limited to, confirmation that the Selling Party owns all right, title and interest in and to the operating assets of the Companies. The purchase price will be based on a fair market report valuation report prepared by RwE Growth Partners to be determined at a later date but before the finalization of the Acquisition Agreement. Such valuation report shall be paid for by the Buyer.
For further information, contact Mike Withrow, mike@AREVBrands.com 778-379-8551.
On behalf of the Board,
CEO & Director
About AREV Brands International Ltd.
AREV Brands International Ltd. (“AREV”) produces and delivers functional compounds and ingredients from its world-class extraction systems. AREV is revolutionizing the current delivery method of terpenes, cannabinoids and flavonoids. These premium ingredients and formulations are used in products targeted for sale in the natural health, medical, functional food, nutraceutical, sport nutrition and bioceutical markets. AREV innovates through extraction to produce extracts from specific selected plant and exude from trees that address 5 areas of health including Anxiety, Pain Management, Insomnia, Central Nervous System Disorders & Libido.