OTTAWA, May 15, 2018 /CNW/ - NordikLeaf™ (Company), a medical grade cannabis company, today announced that it intends to raise $25 million by July 2018 to coincide with an agreement with a large commercial construction company that will be financing the construction of the first of two phases required to bring its purpose-built marijuana production facility to over 300,000 square feet. A total of 62,500,000 common shares in the company, representing 67% of total shareholdings, will be sold at a price of $0.40 to existing and new shareholders.
The Company intends to use the proceeds to complete construction on the first phase of 100,000 square feet in its staged build plan, as well as to fund general operations. Phase one is expected to be completed by March 2019 and will consist of associated support facilities and 50,000 square feet of flower rooms. Upon completion of phase one, Health Canada will conduct a pre-license inspection, with the license to cultivate anticipated by May 2019. Phase two, which will be funded by a subsequent financing round and company cash flow, will add over 200,000 square feet of flower rooms and associated support facilities and will be completed by September 2020.
"NordikLeaf™ has a unique financing model and has assembled an amazing team with hands-on industry and ACMPR (Access to Cannabis for Medical Purposes Regulations) experience," said James Mackenzie, Chief Executive Officer at NordikLeaf™. "Few companies are better positioned to take advantage of the upcoming legislative changes and NordikLeaf™ will be able to provide safe, quality flowers and related products, without irradiation, with a range of cannabis strains focusing on healthy choices, low paranoia options, and elevating life's experiences."
"The cannabis landscape has been changing quickly, and NordikLeaf™ has plans to stay ahead of the curve," said Greg Black, Chief Operating Officer at NordikLeaf™. "As production capacity comes on market, it is diverted to domestic and international customers and oil extraction processes. This puts a huge constraint on supply and demand, so much so that by 2024 demand will be three times production capacity. The time is right for NordikLeaf™ to bring our cannabis production facility to market and take advantage of this great opportunity."