Sunniva will retain ownership of Sunniva Medical Inc.
Sunniva Inc. (CSE:SNN) announces that effective June 6, 2020, it has terminated a previously announced Share Purchase Agreement dated June 11, 2019, as amended, with the respect to the sale of Sunniva's wholly-owned subsidiary Sunniva Medical Inc. to CannaPharmaRx, Inc. SMI is the indirect owner of an approximate 114-acre property in Okanagan Falls, British Columbia, through its wholly-owned subsidiary 1167025 B.C. Ltd.
Following termination of the agreement with the CannaPharma, 1167025 B.C. Ltd. entered into a Purchase and Sale Agreement with an independent real estate investment fund pursuant to which it has agreed to sell the OK Falls Property to the Buyer for gross proceeds of CA$9,000,000. Closing of the OK Falls Transaction is subject to completion of due diligence of the Property by the Buyer, but is not subject to a financing condition. Closing is expected to occur on or before July 15, 2020. Following the discharge of the existing mortgage on the OK Falls Property and other anticipated closing costs, including legal fees and a 3% commission payable to the agent for the Buyer, net cash proceeds at closing to Sunniva are expected to be approximately CA$5.2 million.
Sunniva will retain ownership of SMI and 1167025 B.C. Ltd. and various equipment and assets currently on site.
Disclaimer: Past performance is not an indicator of future performance.
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