Alchemist Mining Inc (CSE:AMS) announced Thursday that it has entered a non-binding letter of intent (LOI) for the acquisition of All Nations Cannabis Corporation, which is in the final stages of receiving a Health Canada license for the cultivation and processing of cannabis and associated products.
In a statement, Alchemist said the transaction will include $20 million of real estate on First Nations territory, including a built-out late stage 30,000 square-foot cultivation facility on 14 acres of leased land with another six buildings on individual parcels of leased property.
The proposed deal under the LOI also calls for the issuance of $20 million worth of Alchemist common shares at $0.045 each.
In other news, the company announced a non-brokered private placement of common shares for gross proceeds of up to $3 million at $0.035 each.
Vancouver-based Alchemist said it intends to close a first tranche of the placement in the near future and the remainder via a second tranche concurrently with the closing of the transaction.
Proceeds from the first tranche will be used for working capital and proceeds from the second tranche will be used for working capital and to execute the resulting issuer’s business plan over the subsequent 12 months.
“We are very excited to announce this development,” said CEO Paul Mann. “The opportunity allows us to work with First Nations communities across Canada and to help those communities prosper from jobs created, skills training provided and a contribution to indigenous social programs that will be created from the financial returns of our partnerships. Once completed, the transaction will allow us to roll out a national footprint of retail stores, with 30 more to-be-licensed locations already in the All Nations pipeline.”
Darwin Douglas, CEO of All Nations, added: “Our Vision is to build a world class cannabis company that ultimately improves the lives of the indigenous communities that we work with. This transaction with Alchemist provides us with the platform to get there.”
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