An Edmonton cannabis company has recently acquired the assets of a Calgary-based pot producer to help build a strong Alberta company with vast production potential.
On Thursday, Freedom Cannabis Inc. announced that it had completed an acquisition of Boaz Pharmaceuticals Inc. in an agreement with undisclosed details.
Freedom says the acquisition will provide the company with additional growing capacity and packaging equipment for its services division.
The newly acquired assets from Boaz include 126,000 square feet of space designed for cultivation and manufacturing. Freedom says that this large addition to its resources will enable the company to double its production capability and provide it with entry into cannabis 2.0 products.
The assets obtained from Boaz primarily consist of 44 specially designed shipping containers equipped with state-of-the-art technologies designed to produce better crops and more plentiful yields. Each container is capable of holding approximately 850 pot plants and can produce about 40,000 grams per harvest.
Freedom says that principal shareholders of Boaz have committed to investing $1.8 million into the company which will provide it with additional working capital and that the recent transaction will give shareholders additional EBITDA via synergies and additional strategic initiatives.
“This is an exciting step toward our vision of expanding the scale of our quality cannabis products, while contributing to overall shareholder value,” said John Frank Potestio, CEO of Freedom Cannabis.
“Boaz has a demonstrated history of producing quality craft cannabis and will integrate seamlessly with our own products.”
Freedom will be acquiring all inventory from Boaz and product SKUs currently available within Canada. This will include provinces that Freedom does not have a strong market presence in like the Maritimes, where Boaz has a strong foothold.
The company will also be obtaining intellectual property assets such as pertinent information related to Boaz’s extracts division and cannabis-infused K-Cup coffee product.