CannaRoyalty signed a multimillion-dollar deal to acquire FloraCal Farms, a move that expands the Ontario-based firm’s California portfolio.
Highlights of the transaction include:
- Total purchase price of Sonoma County-based FloraCal includes 1.3 million Canadian dollars ($1 million) in cash and 3.5 million shares of CannaRoyalty.
- CannaRoyalty will provide an additional CA$3.8 million in cash and 3.5 million more CannaRoyalty shares over three years, based on performance milestones built into the deal. Those milestones include a commitment by FloraCal to fully expand into its 42,000-square-foot facility and meet certain product thresholds and cost controls.
Marketed as a grower of ultra-premium flower product, FloraCal posted $6.4 million in revenue in 2017.
CannaRoyalty is among a growing number of larger, publicly traded Canadian firms that are increasing their stake in the California market, where there are no residency requirements for ownership of cannabis businesses.