Block Commodities Ltd (LON:BLCC), which focuses on the cultivation and research of medical cannabis and related treatments, and Century Cobalt Corp (OTCMKTS:CCOB) have signed an option agreement to acquire around 2mln seeds from a private seed bank in Cleveland, Ohio.
The Aquis-listed firm said the seeds comprise four varieties suitable for the production of medicinal grade cannabis, with an average 14.5% cannabinoid content and a 0.25% tetrahydrocannabinol (THC) content. If the option is exercised, both Block and Century Cobalt will hold an interest of 50% in the cannabis seed stock.
The proposed terms include an option fee of £2 and the payment by Block of £100,000 through the issue of around 142.9mln shares upon exercise of the option calculated at 0.07p each. Century Cobalt will pay £100,000 via the issue of its own shares at US$0.07 each, using the closing middle market exchange rate on the day prior to completion.
Shares in Block were trading at around 0.03p in early deals on the Aquis exchange on Wednesday.