- PACR private placement comprised of 8,333,333 units for possible gross proceeds of $1.5 million
- Funding to support Company’s continued progress in current, potential efforts
- An example of Pac Roots projects includes JV with Rock Creek Farms, which resulted in profitable first harvest that delivered 200% ROI
Pac Roots Cannabis (CSE: PACR) (OTCQB: PACRF) has announced a non-brokered private placement (https://cnw.fm/9VKYf) to strengthen its financial position as it focuses on the future of genetics and its commitment to quality over quantity. Headquartered in Canada, Pac Roots is dedicated to producing premium-quality strains and products by leveraging a genetics-focused approach.
The announcement of the private placement noted that up to 8,333,333 units would be offered at CDN$0.18 per unit for a potential of $1.5 million gross proceeds for the Company. Each unit consists of one common share in the capital of the PACR along with one common share purchase warrant, which will entitle the warrant holder the right to acquire an additional common share at CDN$0.30 for 36 months after the offering closing. The offering is expected to close on or about Feb. 12, 2021, subject to typical approvals.
Pac Roots announced several significant initiatives in the past year, and the additional funding will support the Company’s continued progress and success in these projects as well as other operational expenses. Included in Pac Roots portfolio is a joint venture with Rock Creek Farms, which resulted in a profitable first project last fall that garnered an ROI of 200% (https://cnw.fm/Jmxon). The completion of its successful 2020 outdoor premium CBD hemp harvest marks PacRoots’ first production project, and the impressive results are proof of how vital the combination of farming experience, suitable genetics, and an ideal climate and region are in producing a successful CBD hemp crop.
The Company, which through a joint venture holds a Health Canada license to cultivate, sell, import, export, possess and process industrial hemp, announced that the yield for the 100-acre pilot outdoor hemp CBD harvest at Rock Creek Farms was “much higher than our expectations.” The total biomass harvest yielded more than 105,000 pounds.
In the announcement of the harvest, Pac Roots noted that “with a very low cost to harvest, as opposed to greenhouse costs that currently dominate the industry, the Company has an opportunity to disrupt categories within the hemp industry. PacRoots believes that the largest advantage it has over its competition is its low-cost production, giving the Company the ability to be extremely price competitive on the market while continuing to maintain healthy profit margins.”
“We are very proud of our team and partners at Rock Creek Farms who have been committed to the vision and dedicated to achieving success,” noted Pac Roots president and CEO Patrick Elliott. “In light of some unusual extreme weather, the team was able to react quickly and minimize crop loss from the early freezing temperatures experienced during the harvest. The JV is fortunate to have recovered as much tonnage as was realized under the circumstances that culminated at other farms in the Province. PacRoots and our partners are thrilled to build on this success as we launch into 2021 with various exciting projects.”
For more information, visit the company’s website at www.PacRoots.ca.
NOTE TO INVESTORS: The latest news and updates relating to PACR are available in the company’s newsroom at http://cnw.fm/PACR
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