- PACR, Rock Creek Farms moving forward on definitive CBD-hemp joint venture
- Agreement outlines creation of new company, operation of 100-acre commercial hemp operation
- PacRoots CEO praises short-term progress making 2020 production scenario possible
Pac Roots Cannabis (CSE: PACR), a Canadian cannabis company dedicated to producing premium-quality strains and products by leveraging a genetics-focused approach, is moving forward on a definitive CBD-hemp joint venture with Rock Creek Farms (http://cnw.fm/0xMH6). The agreement, announced earlier this year, calls for the two companies to create a new company and facilitate a 100-acre commercial hemp operation located in Rock Creek, British Columbia.
“The joint venture team has been extremely busy preparing and planting the 100 acres with hemp-CBD cultivars,” said Pac Roots president and CEO Patrick Elliott. “We are thrilled with the short-term progress, making it possible for a 2020 production scenario to cultivate industrial hemp in the ‘Golden Mile.’ Our operational partners at Rock Creek Farms bring decades of generational farming expertise in one of Canada’s pre-eminent growing regions. It will be an exciting outdoor growing season for the joint venture as we anticipate a successful harvest in the fall.”
According to the agreement, which was released in May, the new company will be called Outdoor Premium Hemp and will be 60% owned by PacRoots and 40% owned by Rock Creek Farms. On June 30, 2020, the two companies finalized a definitive investment agreement, which further defined the terms of each company’s respective investments as well as the creation and governance of the joint venture company.
In part, the agreement notes that PacRoots’ contribution to the joint venture will be $450,000 in capital, of which $200,000 has been paid to date; the balance will be funded upon closing of the investment agreement. For its part, Rock Creek Farms has contributed two commercial leases for more than 100 acres of growing space, along with consulting services, cultivation licenses and equipment, agricultural infrastructure and intellectual property relating to commercial scale hemp operations and proprietary biomass storage techniques.
The agreement also stipulates that profits generated from the new company will first be distributed to PacRoots until its capital contributions have been repaid; profits made after that will be allocated in accordance with the interests held by the two companies. Once the joint venture has closed, a shareholder agreement outline the governance of the new company.
Crews have been working nonstop to prepare the 100-acre cultivation site, install irrigation and plant the seedlings. “Thus far, approximately 42,500 premium hemp CBD seedlings have been planted across 35 acres on the lower paddock, and the remaining acreage is expected to be planted in the coming weeks,” reported a recent press release. “PacRoots and Rock Creek Farms have planted a premium-grade, CBD-hemp variety through traditional and customized farming techniques while utilizing the rich native soil.”
PacRoots began operations in 2012 with initial activities directed toward exploration and development of mineral properties in Canada. The company’s mission has evolved over time, and today, PacRoots is focused on cannabis and hemp cultivation, leveraging high-end genetics and specialized cultivars to produce top-quality products. Preserving the excellence of its elite strains while introducing the highest quality of new strains to the public is the company’s passion. Genetic variation and stability is the foundation that drives the decision making for Pac Roots Cannabis Corp.’s business.
For more information, visit the company’s website at www.PacRoots.ca.
NOTE TO INVESTORS: The latest news and updates relating to PACR are available in the company’s newsroom at http://cnw.fm/PACR
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