An uncompleted cannabis production plant in Okanagan Falls has changed hands for $20 million.
Sunniva Inc. is selling the 114-acre property to CannaPharmaRx, Inc. Sunniva will receive a net closing profit of $15.5 million upon closing, which is expected to occur around July 5, 2019.
The company claims to have sold to property to focus on its production facilities stateside.
"Sunniva is focused on the advancement of our California assets and expanding our sales and distribution infrastructure in the state to support our continued growth in this rapidly evolving market,” said Dr. Anthony Holler, CEO of Sunniva Inc. “The disposition of the Okanagan Falls property is part of this strategy as we are directing our efforts and capital resources towards the completion of the Cathedral City facility and the ongoing development of our cannabis brands in California."
CannaPharmaRX is planning to build a 759,000-sqaure-foot greenhouse on the site. Sunniva purchased the site last May for $7 million.
The purchase provides the Calgary-based investment firm with the opportunity to gain a stronger foothold in the cannabis production industry in Canada.
"The acquisition and development of the Okanagan Falls property, combined with our Hanover, Ontario property and ownership interest in GN Ventures Ltd., sets the stage for the next step in CannaPharmaRx's growth strategy to become a significant player in the Canadian cannabis industry while continuing to strive to maximize shareholder value," said Dominic Colvin, CEO of CannaPharmaRx.