Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

AgraFlora Organics CEO says recent asset sales give ‘us the financial flexibility’ to enter lucrative markets

% of readers think this story is Fact. Add your two cents.

AgraFlora Organics International Inc (CSE:AGRA) (OTCMKTS:AGFAF) (FRA:PU31) CEO Elise Coppens told shareholders the “transformational sale” of two of its assets provided the company with the financial flexibility to look at entering more lucrative markets. 

On Tuesday, AgraFlora struck an agreement to sell The Edibles & Infusions Corporation (EIC), an entity in which AgraFlora owns 43%, to Organigram Holdings Inc (TSE:OGI) (NASDAQ:OGI) (FRA:0OG) for $35 million. 

Earlier this month, the Vancouver, British Columbia-based company which grows, distributes, and markets premium cannabis and cannabis-infused products, also struck a definitive agreement to sell its wholly-owned subsidiary AAA Heidelberg Inc (AAA) for around C$1 million in cash. 

READ: AgraFlora and other owners to sell edibles business for $35M to Organigram Holdings

“It is always a difficult decision to sell a significant asset, however, the timing of our review of all company assets aligned well with the opportunity to receive the value that we did for this facility. Ultimately, the sale of AgraFlora’s share of EIC was a strategic decision,” Coppens said in a letter to shareholders.

“So what’s next, you may ask? With the proceeds from the sale of EIC, as well as from the recent smaller sale of AAA Heidelberg, AgraFlora is now in the best financial shape that it has been in over 24 months. The sale these two assets gives us the financial flexibility to look at entering more lucrative markets.”

Coppens noted that the resources also empower AgraFlora to redirect its focus toward generating meaningful revenue and growing cannabis at its Delta facility.

“More importantly, the proceeds enable us to evaluate future opportunities in Canada and the United States,” added Coppens. “The cannabis industry is evolving rapidly and I see a lot of potential south of the border, including but not limited to the recent embracing of recreational cannabis by the state of New York.”

He added that if the legalization of marijuana trend continued in the $22.9 billion US market, then “one of my goals is to position Agra to be a participant in that ever growing and developing landscape.”

“The moves we have made in the past few days will give AgraFlora the financial flexibility to not only develop our current assets but also to consider other potentially accretive acquisitions that we otherwise would not have been in the position to explore,” said Coppens. 

“The Management and the Board of Directors are still evaluating AgraFlora’s other assets … As mentioned in the post-AGM business update presentation, my near-term efforts are focused on reshaping our company so it can capture maximum revenues and profits from its best assets.”

AgraFlora’s flagship Canadian asset is Propagation Services Canada, a large-scale commercial greenhouse in Delta, British Columbia focused on reshaping the Canadian flower market with high-potency, low-cost cannabis. In addition, AgraFlora’s wholly-owned subsidiary Farmako GmbH, is poised to become one of Europe’s leading distributors of medical cannabis.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Load more ...




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.