Agra Ventures Amicably Exits Unprofitable Joint Venture

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The company sold its debt and equity interest in Propagation Services Canada Inc. for a total of $250,000, and Nick Cusick has resigned from his position as officer and director of the entity, among other closing terms and conditions.

VANCOUVER, British Columbia, June 16, 2023 (Globe Newswire) — Agra Ventures Ltd.
(“AGRA”)
or
the
“a company”)
(CSE: AGRA)
(OTCPK:
drier) A company focused on the cannabis industry, announces that it has mutually agreed to the effective termination of Propagation Services Canada Inc.BBC“or the”JV”) by executing a series of agreements (“Conventionswith its joint venture partners and related entities. As of today, the company has settled debts receivable and sold its equity stake in the BBC to its joint venture partner for a total of $250,000. Nick Cusick, CEO and director of AGRA, has resigned as officer and director of the joint venture.

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In addition, a mutual statement was executed between AGRA, a wholly owned subsidiary of AGRA, and its respective directors and officers; and the BBC, the owner, the joint venture partner and the respective directors and officers. By exiting the BBC, the company has taken an important step towards stemming the tide of financial losses, and thus, is now in a better position to maintain its current cash balance, pursue collection of remaining dues, sell other non-core assets, and consider a strategic pivot in a promising direction. More in the cannabis industry.

Over time, the joint venture partner’s talented team has demonstrated that it can successfully grow and process the highly potent Mimosa strain of cannabis using approximately 130,000 square feet of the 2.2 million square foot greenhouse complex. Although all the loose cannabis produced inside the greenhouse facility in Delta, British Columbia was sold, with the added help of a skilled third-party wholesale brokerage firm in order to attract the best buyers, high supply levels led to lower market prices, plus higher operating costs. , without the joint venture making a profit at any time.

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Since inception, the BBC has accumulated approximately $25 million in losses and was not expected to report net income in the foreseeable future, due to unfavorable industry conditions, onerous regulatory framework, and unattractive competitive dynamics as a licensed cannabis producer in Canada. Therefore, AGRA and its joint partner have amicably agreed to terminate the cultivation of cannabis after the 2022 growing season and to exit the joint venture in accordance with the agreements recently executed.

Management suspension

“Continuing to lose large sums of money through the BBC was not a viable option for AGRA or its joint partner. Halting cannabis cultivation operations to stem financial losses was a difficult but necessary joint decision, and one that is also being made by management teams in other sectors across the industry. Canadian hemp, even recently in an important way at the retail end of the value chain, said Nick Cusick, director, chief executive officer and director of the company.

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“It is my understanding that many AGRA shareholders hoped the BBC would become a national leader in cannabis production. Unfortunately, the recreational cannabis industry was not built for success and significant changes to cannabis law and other improvements related to taxation are needed in order for the aspects that touch the plant to become However, the exit from the joint venture gives the AGRA Board of Directors the opportunity to consider a new direction for the company, based on its collective areas of expertise and the more attractive alternatives currently available in the market,” added Mr. Kuzyk.

on
Agra Ventures Ltd.

Agra Ventures is a company focused on the cannabis industry. The company’s wholly owned subsidiary, Farmako GmbH, is focused on becoming Europe’s leading distributor of medical cannabis as well as its CBD and THC test kits. Farmako currently has active product distribution operations in Germany and is fully licensed in the United Kingdom.

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For more information about Agra Ventures, please visit www.agraventures.com and her profile page on SEDAR’s www.sedar.com.

On behalf of the Board of Directors

Nick Cusick, CEO and Director
H: ir@agraventures.com

Phone: (800) 783-6056

CSE and the information service provider have not reviewed and are not responsible for the accuracy or adequacy of this release.

Cautionary statement of forward-looking information

Except for statements of historical fact, this press release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is often characterized by words such as “plan,” “anticipate,” “project,” “intend,” “believe,” “anticipate,” “estimate,” and other similar words or statements that certain events or conditions “may” or “will” happen. Forward-looking statements are based on opinions and estimates as of the date the statements are made and are subject to a variety of risks, uncertainties and other factors that may cause actual events or results to differ materially from those projected in the forward-looking statements, including but not limited to delays or uncertainties regarding regulatory approvals including That is CSE approvals. There are uncertainties inherent in forward-looking information, including factors beyond the Company’s control. There are no guarantees that Agra Ventures’ business plans described in this press release will come into effect in accordance with the terms or timeframe described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators and is available at www.sedar.com.

Source: Agra Ventures Ltd.

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