Mota Ventures Corp out of Canada has signed a binding letter of intent to acquire Jamaican cannabis grower and extractor, Tropical Verde Coast Ltd, as it targets the Caribbean cannabidiol or CBD oils market.
CBD oil is a derivative of hemp and is being increasingly used for its medicinal benefits and is effective at treating a range of ailments.
Based on its medicinal value, CDB oils can potentially address conditions from sleep disorders to chronic pain to dealing with discomfort from cancer treatment.
Tropical Verde is an arms-length party licensed cultivator with a focus on cultivation and extraction of cannabis as well as distributing cannabis products in herb shops, dispensaries and health and wellness retail locations across the Caribbean.
MOTA VENTURES TO ACQUIRE 49% STAKE
As a result of the acquisition, Mota Ventures said it will indirectly hold a 49 per cent stake and a 95 per cent net profit royalty in Tropical Verde, which possesses a Tier 1 Cultivator’s licence in Jamaica to produce cannabis for medicinal purposes.
“This transaction shows Mota Ventures strategic commitment to becoming a low cost producer and distributor of high quality CBD products globally,” said Mota Ventures chief executive oficer (CEO) Joel Shacker in a statement.
“The Caribbean region is a very large emerging market with Jamaica leading the way,” Shacker said. Mota Ventures said Tropical Verde is currently finalising its irrigation systems, fencing and security on five acres of leased property, and anticipates that growing will commence sometime later in the first quarter of 2020.
The company noted that Jamaica has a long and rich history of producing high-quality marijuana products. Jamaica’s outdoor growing conditions, coupled with the availability of unique strains, position it to be a leader in the Caribbean region.
DETAILS OF LETTER OF INTENT
Under the letter of intent, Mota Ventures would acquire all of the issued and outstanding share capital of Tropical Verde in consideration for C$5 million, which will be satisfied through the issuance of common shares at a deemed price of C$0.45 per share to Tropical Verde shareholders.
The shares will be subject a four-month-and-one-day statutory hold period.
Mota Ventures is based in Vancouver, British Columbia.