The acquisition will strengthen the Company’s holdings with one of three Tier-3 Jamaican Licenses
CANADA: Weekend Unlimited, a lifestyle cannabis company, has entered into an arms-length binding letter of intent to add to its brand portfolio with the acquisition of R&D Pharma in Jamaica, securing one of three Tier-3 licenses available in Jamaica.
R&D Pharma Highlights include:
- Weekend Unlimited’s planned acquisition in Jamaica is led by Derrick Lewis and Richard Bailey, CEO and President of R&D Pharma respectively.
- One of only three approved tier-3 cultivators license holders in Jamaica.
- Medical tourism in Jamaica, plus phenotyping with Jamaican sativas, to brand and export internationally recognized strains, extracts, and infused products.
- Will be a significant exporter of branded full spectrum extracts as well as extracted cannabinoids from one of world‘s lowest cost geographies for growing cannabis.
- Weekend Unlimited will acquire 100% of R&D Pharma, which includes a 49% interest in a Jamaican company holding one of the existing Tier-3 licenses in Jamaica. R&D Pharma also holds a royalty agreement on the all production, giving it a near 100% economic interest in the license being acquired.
R&D Pharma is a Canadian company building a vertically integrated medical cannabis business in Jamaica. R&D has secured a Tier 3 Cultivator’s License (only one of three presently issued in Jamaica), which allows for full cultivation of cannabis plants on land of over 5 acres. R&D’s founders Derrick Lewis and Richard Bailey are citizens of Jamaica who now reside in Canada, both having significant business networks in both countries.
“This acquisition in Jamaica represents a significant step for Weekend Unlimited as it implements its strategy to be a top tier integrated cannabis company,” said Mr. Cody Corrubia, Weekend Unlimited’s President and CEO. “By adding R&D to our brand portfolio, we secure a highly coveted asset for cultivation in a low cost, high quality environment like Jamaica, which has international appeal in the cannabis space, with unparalleled lifestyle applications,” added Mr. Corrubia.
“We are thrilled to add value to Weekend Unlimited’s brand portfolio,” said Mr. Derrick Lewis, CEO and Director of R&D. “Our assets in Jamaica are founded upon highly organized cultivation, which we will extend to build our international branding base, securing long-term contracts and relationships for the sale and/or out-licensing of internationally recognized strains, full spectrum and extracts, and infused retail products,” added Mr. Lewis.
“To accelerate our plan, R&D is building an Herb House/Ganja Café and Therapeutic Spa at Ocho Rios, on our 98 acre location which contains the cultivation operation. The Café and Spa will showcase products and deliver experiences to consumers of cannabis from around the world. R&D will also distribute standard medical products on the island domestically and to medical tourists,” said Mr. Lewis.
Weekend Unlimited will issue to the shareholders of R&D a total of 50,000,000 common shares and 25,000,000 warrants. Each warrant entitles the holder to subscribe for an additional shares for $0.35 for a period of 2 years from closing, subject to the right of the Company to accelerate expiry date upon 30 days’ notice if its common shares trade at $0.75 or higher for 10 consecutive business days any time after 4 months from closing. Approximately 35 million of these shares will be subject to a 3 year escrow, with releases of 10% on closing, and 15% on every 6 month anniversary.
Pending closing, the Company has advanced CDN $2.4 million on a secured loan basis to R&D for construction costs. It is anticipated that another US $9 million will be required to complete the buildout of the planned Jamaican facilities. The Company plans to fund all of this by way of an equity raise or debt or a combination of the two.
While in the final due diligence stage, the Company anticipates closing this transaction within a month. However there is no certainty that this transaction will close, or if it does close, will close on the current terms as agreed between the parties.