RE:Trouble in Paradise?If wholesale prices of CBD in Europe have tanked like Stillcanna claims then Dragonfly probably want to renege on the minimum purchase price.
"As of the date of this report, BCI has reached a definitive shareholders’ agreement with DragonFly Biosciences (UK) LLC. (“DFB”) to form an exclusive joint venture (“JV”) company – i.e., named Premium Extractions, Inc. (“PEI”).
The shareholders’ agreement sets out that PEI is owned 49% by BCI and 51% by DFB. The shareholders’ agreement also sets out that DFB is:
(a) contributing continuous longterm access to its hemp crops;
(b) will provide certain processing equipment;
(c) its growing expertise; and
(d) a takeup agreement with PEI to purchase a minimum of 50,000 grams of CBD per month at 2 Euros per gram.
The shareholders’ agreement also sets out that BCI will provide:
(a) PEI access to use its Extraction System;
(b) capital to fund the development of PEI’s initial Romanian extraction facility located near the Bulgaria/Romania border. and
(c) BCI’s operational extraction management capabilities as well as capital markets expertise.
Mike660 wrote: Captured this tidbit of information in the Sativa Acquisition announcement. Seems like partnership problems with Dragonfly
"Stillcanna is pleased that its subsidiary, Borganic Consulting Inc, has secured all licenses and permits required for its ORIGIN extraction facility in Romania to commence the manufacturing of CBD. The facility was constructed through a joint venture partnership with Dragonfly Biosciences Limited of the UK. Even though Borganic Consulting remains dedicated to the ORIGIN extractionfacility it has become concerned with the behaviour of its partner Dragonfly Biosciences. In order to secure the future of the ORIGIN extraction facility and its investment to date, Borganic Consulting has initiated legal action in the UK against Dragonfly Biosciences for contractual breaches under the partnership agreement and Stillcanna is confident that Borganic Consulting will be able to resolve these issues in a timely manner. Regardless of this action, Stillcanna and Borganic Consulting will continue towards the commencement of manufacturing CBD at the ORIGIN facility as soon as possible."