CordovaCann Holdings, Inc. wholly-owned subsidiary of CordovaCann Corp. (OTCQB:LVRLF) (CSE:CDVA) acquired the rights to purchase assets of AuBio Labs, LLC.
AuBio is an arm's length California-based company that holds licenses, equipment and a leased facility to provide cannabis extraction services and manufactured products for sale to licensed cannabis retailers in the State. The assets will enable Cordova to produce a variety of cannabis products on both a white label and branded basis for the largest cannabis market in the world.
AuBio, headquartered in Costa Mesa, California will launch a lineup of cannabis derivative products under the AuMor brand and will also produce extracts and end products for other licensed cannabis operators via tolling agreements and white label manufacturing contracts. The business is expanding its customer base and product offerings and will continue to be led by its founder. "We are excited to become part of the Cordova team by the Cordova growth plan and believe we can make California a significant part of Cordova's growth plan in the coming years," stated Jeremy Miller, founder of AuBio. "In addition, the brands created in California can be manufactured by Cordova in Washington and Oregon through their existing operations in the United States, adding value to the overall US portfolio."
The assets include equipment for extraction and manufacturing, intellectual property related to various AuBio brands already in the market or that are expected to be launched, contracts regarding the distribution of branded products, and the option to secure the currently leased premises in Costa Mesa. The consideration for the transaction is $700,000, of which $100,000 was provided as a loan to AuBio on the closing date. Cordova will loan an incremental $100,000 on the monthly anniversary of the closing date for each of the next five months, and then provide a final loan amount of $200,000 on November 26, 2022. Upon providing the final loan tranche, Cordova has the option to convert the loan to equity for full ownership of the assets.
"We welcome the AuBio team to the Cordova family and are excited to enter the California market through this very attractive transaction," stated Taz Turner, chairman and CEO of Cordova. The acquisition coupled with the experience and industry contacts of the AuBio team position Cordova for rapid growth in the California market for years to come."
Photo by Tim Foster on Unsplash
Related News
Star Buds Cannabis Partners With DoorDash Canada To Launch Cannabis Pickup In Ontario
CordovaCann Opens 14th Star Buds Cannabis Co. Store In Canada
