(MENAFN- ACCESSWIRE) LAS VEGAS, NV / ACCESSWIRE / September 16, 2021, Crucial Innovations Corp, (OTC PINK:CINV), a Nevada company, today announced that it has agreed to acquire, through a reverse merger ("the Merger"), Eco Equity (Pty) Limited, a medical cannabis operation in Zimbabwe, Africa, operating as a subsidiary of JPD Capital PCC, a Guernsey investment fund with multiple investments in the medical cannabis sector in Africa and the UK.
CINV will acquire 100% of the stock of Eco Equity (Pty) Limited ("ECO") and the entirety of its medical cannabis cultivation assets, at a valuation of $210,000,000, as appraised by Baker Tilly International in a recent review, and
As part of the agreement, CINV has agreed to undertake a private placement offering pursuant to Regulation D - Rule 506 in the US, and to foreign investors under Regulation S, to raise $25,000,000 at $5.00 per share. The private placement will be available to accredited investors immediately following the completion of the Merger.
"This is a major milestone in the evolution of Eco Equity. For nearly three years we have been at the leading edge of the industry, and now we will be the first Africa-only cannabis producer to be publicly traded on a US market," said JP Doran, JPD's co-founder and chief executive. "Our low-cost production model and focus on medically useful genetics and cannabinoids position ECO to become a dominant force in the increasingly global cannabis market; this Merger will give us the resources we need to accomplish that objective."
Upon completion of the Merger, ECO will become a wholly-owned subsidiary of the publicly-traded company which will be renamed Eco Equity Corp, and apply for a new stock trading symbol to reflect its new name and brand.
The completion of the reverse merger is subject to certain conditions including CINV filing its June 30 10 Q and being current in its SEC Filings, and Eco Equity Zimbabwe (Pty) Limited delivering its audited financial statements.
About Eco Equity Zimbabwe (Pty) Limited
ECO's facilities in Zimbabwe include a fully licensed 16,500 m2 polytunnel greenhouse, a 450 m2 R & D facility for genetics research, and an onsite pumphouse that provides adequate power to service all operations.
The cultivation site is 24,000 m2 and a 14,000 m2 post-harvest facility houses extraction equipment and packaging machines. The company is also preparing to build a GACP/EU-GMP certified, state-of-the-art, fully computerized 20,800 m2 glass greenhouse.
Currently operating at a forecast annual production rate of 15,470 Kg of high-THC cannabis flower and 1,591 Kg of distillate oil, management intends to continue scaling the operation to meet growing demand and expects to announce its first product sales by the end of 2021 and projects that it will be profitable in 2022.
ECO has a strong commitment to corporate responsibility. Through partnerships with community organizations, it provides local residents with access to healthcare and creates jobs. The company also built a solar plant on-site to meet its operating power requirements and redirects surplus energy to the community for domestic consumption.
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Laura De Leon Castro, CEO
Authorized by Laura De Leon Castro, CEO
SOURCE: Crucial Innovations Corp.
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