Agra Ventures Ltd. (CSE:AGRA, OTC:AGFAF) said it has recorded over $318,000 in revenue with an additional $173,000 under signed contract from the sale of dried cannabis flower on a wholesale basis over the past two months.
The Vancouver, British Columbia-based diversified cannabis company said the record result, for the period from December 7, 2021, to February 8, 2022, is the aggregate of over 175 kilograms of cannabis contracted under four separate transactions. These include deals under a previously announced offtake agreement as well as others, for an average price in excess of $2.75 per gram.
"The last two months have been exciting for Agra as a record amount of revenue was recorded based on growing high-quality cannabis and selling it on a wholesale basis, consistent with our refocused competitive strategy,” the company’s CEO Elise Coppens said in a statement.
“I am grateful to our talented and dedicated staff at the Boundary Bay greenhouse for growing such desirable crops and to our external partners for doing a great job to get the batches to the industry," she added.
READ: Agra Ventures says its subsidiary Farmako has made its first commercial import of cannabis extracts from Poland to Germany
AGRA noted that all of the dried flower was grown, cultivated and processed at its Boundary Bay facility in Delta, British Columbia. Using its own genetics, it said its employees and a small number of advisors with senior levels of expertise in cannabis growing have worked together to produce multiple crops of desirable strains in multiple batches over the last several months. As a result, it is receiving increased interest for its dried flower from licensed producers of cannabis across Canada.
The company also announced that it has entered into a definitive share purchase agreement with Twenty One Investment Holdings and all its shareholders to acquire up to 34% of the privately held Delaware company’s shares.
Twenty One is the owner of a technology platform supporting retailers and their customers with in-store and online cannabis buying experiences in the US.
The acquisition closed on February 8, 2022, with Agra purchasing 500,000 newly issued common shares of Twenty One directly from the company and 500,000 common shares from its shareholders for $1 each. As a result of the initial closing, Agra holds 15.38% of the common shares of Twenty One.
Within six months, it will purchase additional Twenty One shares for an aggregate investment of at least $1 million and buy up to $1.5 million of stock, also at $1 per share. Half of the additional shares will be sold and issued by Twenty One, with the balance sold and transferred by the selling shareholders. Following the second closing, Agra said it will hold between approximately 28.57% and 34.47% of Twenty One’s common shares.
"I am also excited for Agra to acquire a significant part of Twenty One and technology that is focused on the US cannabis retail sector,” Coppens said.
“Our goals of generating revenue from the sale of cannabis, positioning Farmako for success in Europe and finding a way into the US cannabis market in a legal way and at a reasonable cost are all in the process of being achieved, which is a fantastic way to start 2022,” she concluded.
Agra Ventures’ brands and subsidiaries offer a portfolio of cannabis and related products to customers on a multinational basis. It is leveraging advanced technology, innovative practices, and one of the largest greenhouse complexes in the world to develop, produce and distribute high-potency and affordable cannabis products.
Contact the author at stephen.gunnion@proactiveinvestors.com