A cannabis company that has a partnership with a large-scale East Ladner greenhouse this week announced it has signed a cannabis purchase agreement with an arm’s-length third party.
Partnering with the Houweling Nurseries complex on 64th Street in a venture called Boundary Bay Cannabis, Agra Ventures Ltd. says the offtake agreement specifies the recurring monthly purchase of a defined minimum quantity of cannabis in dried flower form with a minimum range of THC content, terpenes and other specifications.
Due to the confidentiality clause within the agreement, no specific price, volume or other such information can be disclosed by either the company or its affiliates or by the purchaser, Agra Ventures noted.
Subject to other terms and conditions, the contract has an initial term of six months with a renewal term of equal length if not terminated by either party, or a delivery date of the first order of cannabis being on or before Nov. 23, 2021.
Agra Ventures also noted that entering into the offtake agreement marks a significant milestone for the company as it formalizes the ongoing sale of Boundary Bay Cannabis products grown at the Delta greenhouse complex on a wholesale basis for the first time.
Agra Ventures also announced that its wholly-owned owned European subsidiary, Farmako GmbH, has conducted the first commercial import of cannabis extracts from Poland to Germany, which is the largest medical cannabis market in Europe.
Farmako GmbH is a certified pharmaceutical wholesaler distributing medical cannabis to pharmacies in Germany since March 2019 and is fully licensed in the United Kingdom.
Meanwhile, legal action was launched this September against several individuals connected Agra Ventures alleging a years-long conspiracy in which millions of dollars were unlawfully siphoned from the company.
In a petition filed in BC Supreme Court, Brian Mohammed seeks to sue a number of individuals connected with Agra Ventures Ltd., many of whom are described as current or former insiders or purported consultants to Agra and/or two other public companies, alleging they were engaged in unlawful schemes.
Unlike a typical securities class action where investors sue a company for their investment losses, the complainant is not seeking to sue Agra, but seeks the permission of the court to represent Agra and sue a number of defendants.
There is no “Class” defined in the proposed lawsuit and shareholders of Agra, including the complainant, would not be paid any net recovery directly.
Any net proceeds recovered would be returned to Agra.
In a statement issued Sept. 17, the company said it “takes the allegations contained within the claim seriously and has engaged legal counsel to investigate the alleged matters and to respond to the proposed petition.”
Agra Ventures was formerly called AgraFlora Organics International and its primary asset, Boundary Bay Cannabis, was formerly called Propagation Services Canada.