AgraFlora Organics International Inc (CSE:AGRA) (FRA:PU31) (OTCPINK:AGFAF), the cannabis-focused company, said it had struck a definitive agreement to sell its wholly-owned subsidiary AAA Heidelberg Inc (AAA) for around C$1 million in cash.
READ: AgraFlora Organics names Canadian cannabis industry veteran Elise Coppens as its new CEO and board director
AAA operates an 8,800 square foot (sq ft) indoor growing facility in London, Ontario and the closing of the deal is expected to occur in the second quarter of 2021.
"With the positive developments being experienced in Delta, BC at our Propagation Services Canada facility, the AAA Heidelberg subsidiary was deemed to be non-core to the company," said Elise Coppens, chief executive and director of AgraFlora.
"Further, streamlining AgraFlora’s strategy, focusing on our core assets and benefiting from the cash proceeds of this Transaction are all high priorities for us at this transformative time.
"On behalf of the board of directors, I would like to thank the purchaser for their professionalism and expediency during the course of this transaction," added Ms Coppens.
Contact the author at giles@proactiveinvestors.com