Asterion Cannabis Inc announced Wednesday that the company and its wholly owned Australian subsidiary Asterion Australia have inked an equity participation deal with Wellcamp Business Park Pty Ltd, an affiliate of Wagners Properties Proprietary Limited.
On April 24, Vancouver-based Asterion’s subsidiary said it purchased 75 hectares (185.32 acres) of farmland in southeast Queensland, Australia from Wagners to construct and house purpose-built greenhouses for growing medicinal cannabis.
The property is located near the regional hub of Toowoomba and close to the Toowoomba Wellcamp airport, which provides access to international freighter service.
“Wagners and Wellcamp are expected to play an important role in the construction and development of the Toowoomba Project,” said Asterion Cannabis CEO Stephen Van Deventer. “We are pleased to be offering Wellcamp this equity participation option which is intended to provide Asterion with additional equity financing and offer Wellcamp the opportunity to share in the success of Asterion going forward.”
Option to snap up Asterion shares as payment
According to the terms of the agreement, Wellcamp has been granted the option to take shares of privately held Asterion as payment for up to 10% (and up to 100% with the prior approval of Asterion) of any invoice that has been approved by Asterion.
The Asterion shares will be priced equal to the then-current financing price of Asterion, or if Asterion is not conducting a financing, at the last financing price, said the company.
The Toowoomba project
The new production facility is expected to be developed in three stages, with the first two stages each consisting of a 10-hectare greenhouse facility and the final stage comprising two 10-hectare greenhouse facilities. Each stage will include ancillary buildings.
Asterion expects the facility will have an annual production capacity of around 500,000 kilograms of cannabis and will include extraction and processing equipment as well as a research and development area.
The company recently inked a collaborative research pact with the University of Queensland for an 18-month 'proof-of-concept' program for the clonal propagation of cannabis plants.
The Vancouver-based medicinal cannabis grower’s Queensland facility, covering more than 185 acres is expected to be the world's largest greenhouse cannabis operation.
Contact Uttara Choudhury at [email protected]