07:33 AM EDT, 09/28/2021 (MT Newswires) -- Village Farms International (VFF.TO) said Tuesday that it entered into an option agreement to acquire an 80% interest in Leli Holland, a Dutch company that won one of ten lottery licenses to cultivate and distribute cannabis to retailers as part of a national pilot to test the viability of what could be the first legal recreational cannabis market in Europe.
The deal gives Village Farms the irrevocable right to buy 80% of Leli for a total of 3.95 billion euros, of which 950,000 euros is payable upon the exercise of the option and the rest can be paid in three installments subject to development milestones. Village Farms paid 50,000 euros for the option.
The Dutch pilot requires the ten approved participants to produce at least 65,000 kilograms of dried flower per year and could expand the test's scope nationwide, increasing the minimum annual supply requirement to 485,000 kilograms. The pilot will run for at least four years.
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