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1. |
Aphria invested $2 million in a Nuuvera common share offering; |
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2. |
Aphria entered into a supply agreement with Nuuvera to supply annual requirements of 1,500 kgs, growing to 17,000 kgs when Aphria completes its four-part expansion plan in 2018 ("Supply Agreement"); |
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3. |
Aphria will sell 100 of the 200 acres of land the Company owns on Mersea Road 8 ("Mersea Property") in Leamington to Nuuvera, in exchange for a cash payment of $4 million ("Land Acquisition"); |
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4. |
Aphria will provide consulting services to Nuuvera on the design and build of a 1 million square foot state-of-the-art greenhouse on the Mersea Property, in exchange for a fee equal to 8% of Nuuvera's cost to build the facility, exclusive of its land acquisition costs; and, |
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5. |
Aphria entered into an operational services agreement with Nuuvera to operate the Mersea Property in exchange for a fee of $0.10 per gram of cannabis harvested in the facility ("Operational Services"). Based on Aphria's current expected yield from its 1 million square feet of greenhouse, it is anticipated that the operational services agreement will yield an annual payment of more than $10 million per year to Aphria, once Nuuvera's greenhouse is fully built out. Based on Aphria's current production costs, it is anticipated that Nuuvera will, like Aphria, be one of Canada's lowest cost producers. |
