The acquisition, which will add over 350,000 square feet of greenhouse facility located in Niagara-on-the-Lake, will complement Tweed's current 168,000 square foot indoor facility which is licensed to produce up to 15,000 kg of marijuana per year, while diversifying into a multi-platform producer with indoor and greenhouse production. Through this transaction, Tweed will bolster its ability to provide an industry leading selection of varieties and price points, and create license redundancy to provide investors and customers with enhanced security and reliability of production.
In consideration for the acquired shares in Park Lane, Tweed will pay $3,600,000 cash on closing and up to an additional $100,000 upon achieving certain milestones. Tweed will also issue up to 519,031 shares if and when specific milestones are achieved over the next 12 months. Tweed is optimistic that a portion of the purchase price will be eligible for traditional debt financing secured by the facilities and land owned by Park Lane.
"Tweed is pleased to announce the first material transaction that begins to consolidate the sector on the first anniversary of the issuance of the MMPR," commented Tweed co-founder and Chairman, Bruce Linton. "The opportunity for Tweed to become a geographically distributed and multi-Licensed Producer is extremely exciting and builds on Tweed's commitment to provide a reliable supply of the highest quality medicine in Canada. This acquisition, coupled with our medical education program and exceptional customer care team, positions Tweed to become a major force in an exciting and emerging market."
For Tweed symbol TWD.V there is no message board! why? I see TWD.V has been trading in a narrow range around $3/share since it came into existence about 4 months ago, and today with good news it's trading volume is still pretty low. So these things turn me off to Tweed, somebody turn me on please.
Sentiment: Strong Buy
Yes but its a shame they only have a license to produce 15000 kg. Multi-licensed producer means just that. They go to the back of the line.
Fitx 1.3 million pounds at the front of the line.
Ms. Fart. Lol. Do you realize what you are saying? Right now Tweed has 10X the grow space of FITX. They have turned away customers buying. 15K Kg translates to over 30k lbs @ $2K per lb, that's more than $60M revenue @ 80% margin, nothing to sneeze at. They have $$ from recent financing, applied to HC to expand production. Diversified growing location. First to market and MARKET LEADER.
FITX you say has 1.3M lbs of wishful production with 60K sq. ft. of grow space (10% of Tweed) and without a license. Back of the line. Who are you referring to? Are you blind?
FITX, is the only company that has the cure for some of HC, issues with the courts. Will guarantee adequate supply of meds for patients all med. quality to boot.. HMMM! And do not forget the near zero impact on environment. Just for beginners... HMMM! LOL! BUY! HOLD!
Sentiment: Strong Buy