Freedom Leaf Inc (OTCMKTS:FRLF)
Freedom Leaf Inc (OTCMKTS:FRLF), which focuses on marijuana industry mergers and acquisitions, has signed an intent letter of acquisition with Green Market Europe owners. The acquisition will see Freedom Leaf take ownership of an operational greenhouse that measures more than 60,000 square feet. Shares of Freedom Leaf fell by 1.94% to $0.0505 on Thursday.
The greenhouse consists of more than 20,000 square feet equipped with a light deprivation system necessary for the stimulation of flowering throughout the year. An additional 200 acres are also available for outdoor production and thus the capacity for both outdoor and greenhouse production can be scaled up if necessary.
All the facilities that will be acquired from Green Market Europe are free of debt. The acquisition will include all assets belonging to Green Market Europe such as purchase orders that are more than $450,000, production agreements with local farmers, intellectual property, greenhouse equipment, leasehold improvements, and land leases.
The chief executive officer and co-founder of Freedom Leaf Inc (OTCMKTS:FRLF), Clifford Perry, said the acquisition would turn the company into a major player in the industry.
“With this transformative acquisition Freedom Leaf has become a major participant not only in the booming CBD (cannabidiol) industry, but in many other aspects of the global hemp industry,” said Perry.
Some of the development projects that Freedom Leaf Inc (OTCMKTS:FRLF) is engaged in includes rare cannabinoids research. Hemp seed oil, making furniture and footwear from fabric derived from hemp, phytocannabinoid oil, and CBD drinks.
Spanish Mediterranean coast
Miguel Hernandez University, an institution which possesses extensive facilities for research and development, is collaborating with Green Market Europe in fertilizer testing projects, LED growing systems, and genetic breeding.
Operations are in the Callosa de Segura area of Alicante, Spain and close to Elche city on the southeastern Mediterranean coast. Due to the favorable and moderate climate, multiple crops can be produced every year.
Natural Hemp was started in 2013 by Vicente Javaloyes Martinez and Luis Miguel Santos is the predecessor of Green Market Europe.
One of the agreements contained in the intent letter is that the current management of Green Market Europe will be retained. The acquisition will consist of a common stock transaction of 4,800,000 shares belonging to Freedom Leaf as well as 20,000 euros in cash. Shareholders of Green Market Europe will get to keep half of the profits that have been generated. The flagship publication of Freedom Leaf Inc (OTCMKTS:FRLF) is Freedom Leaf Magazine.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.