Sunniva have amended the terms of the Share Purchase Agreement announced on June 11, 2019.
Sunniva Inc, and CannaPharmaRx Canada Corp. ("CannaPharmaRx"), a subsidiary of CannaPharmaRx, Inc. announced that they have amended the terms of the Share Purchase Agreement announced on June 11, 2019, as amended on October 2, 2019 and November 28, 2019, with respect to the sale of Sunniva Medical Inc. ("SMI") to CannaPharmaRx (the "SMI Transaction").
Both parties have agreed to extend the outside date for closing of the SMI Transaction until March 31, 2020. In addition, prior to the amendment, the purchase price was to be settled with CAD $16.0 million in cash and a CAD $4.0 million promissory note.
Following the amendment, the purchase price will be settled with CAD $12.9 million in cash and CAD $7.1 million through the issuance of 3,566,687 Series C Convertible, redeemable preferred shares of CannaPharmaRx.
Following the settlement of indebtedness of SMI at closing and the mortgage on the Okanagan Falls property, including the previously received CAD $1.9 million in deposits, net cash proceeds at closing to Sunniva are expected to be approximately CAD $7.3 million. The Company and CannaPharmaRx continue to work as expeditiously as possible to get the SMI Transaction completed.
SMI is a wholly owned subsidiary of Sunniva and owns 1167025 B.C. Ltd. 1167025 B.C. Ltd. owns the Sunniva Canada Campus, which includes construction assets for a planned 759,000 square-foot greenhouse located on an approximately 114-acre property in Okanagan Falls, British Columbia.
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