File this under we don’t know what it means, but it sure is interesting…Today, a company called CordovaCann Corp based in Toronto, Canada announced that it has “an exclusive option to acquire a majority stake” in Humboldt Healthcare, LLC. Humboldt Healthcare is a cannabis business based in near Blue Lake that has donated the maximum amount to both the reelection campaigns of Humboldt County Supervisors Ryan Sundberg and Virginia Bass.
According to the North Coast Journal, Humboldt Healthcare has “no web presence beyond a registry with the California Secretary of State’s Office and a corresponding post office box.”
TORONTO, ON / ACCESSWIRE / March 13, 2018 / CordovaCann Corp. (OTCQB: LVRLF) (“CordovaCann” or the “Company”) announced today that the Company has entered into a memorandum of understanding (the “MOU”) with Humboldt Healthcare, LLC (“Humboldt Healthcare”) to grant the Company an exclusive option (the “Option”) to acquire a majority stake in real estate and intellectual property assets owned by Humboldt Healthcare that serve California’s recreational marijuana sector (collectively, the “Assets”).
Under the terms of the MOU, the Company has agreed to pay Humboldt Healthcare $100,000 United States Dollars (USD) in exchange for the Option to purchase the Assets. The Option allows the Company to purchase 100% of the Assets for a total purchase price of $8,000,000 USD or to purchase a 51% interest in the Assets for $4,080,000 USD with the remaining 49% interest to be held by Humboldt Healthcare. Under the latter scenario, CordovaCann and Humboldt Healthcare would operate the Assets under a partnership arrangement. The Option has a term of 90 days which may be extended by an additional 30 days under certain circumstances as further agreed between the parties. The acquisition of Assets would allow CordovaCann to enter the California cannabis market from a premier location in Blue Lake, [Humboldt County]California. The location allows for over 100,000 square feet to be utilized for production and processing of cannabis in the heart of Humboldt County, a leading area of cannabis production in the United States.
The Company welcomes a potential partnership with Humboldt Healthcare given the significant knowledge and experience of the principals involved. These principals are established leaders in the cultivation, manufacturing, and distribution of flower and extracts and provide both raw and processed material to many of the largest brands in the state.
“This opportunity is transformational for CordovaCann in that it allows the Company to enter one of the largest cannabis markets in the world with a potential partnership with one of the most respected and established players in that market,” stated Mr. Taz Turner, CEO of CordovaCann. He added, “The expected returns from the Assets in Blue Lake [Humboldt County] would be significant for the Company. Humboldt Healthcare has been a strong supporter of the Humboldt County community and economy and their team has an impressive track record of execution.”
About CordovaCann Corp.
CordovaCann Corp. (formerly LiveReel Media Corp.) is a Canadian-domiciled company focused on building a leading diversified cannabis company. CordovaCann primarily provides services and investment capital to the processing and production vertical markets of the cannabis industry.
UPDATE: Emerald Family Farms, LLC does business as Humboldt Healthcare.
UPDATE 2: CordovaCann has issued a revised press release in which Blue Lake has been removed and the words “Humboldt County” has been substituted. Thank you to Amanda Mager, Blue Lake City Manager for bringing this to our attention.