Affinor Resources (CSE:AFI, Stock Forum), a Montreal Quebec-based firm entrenched in the race to capitalize on the emerging medical marijuana sector, announced today that the company reached an agreement in principle to obtain an exclusive license to the world's first automated growing technology for non-GMO grade A1 market ready strawberries with Vertical Designs (“VDL”), allowing the company to begin production as it waits for the approval of its medical marijuana (MMPR) license.
According to the news release, the automated software driven system utilizes mechanical pollination with zero water waste giving the company the ability to grow indoor crops year round regardless of seasonality.
Affinor will utilize the technology to produce leafy green vegetables and other food and produce items as the market requires.
Terms of the license require the company to pay an aggregate $250,000 and issue a total of 1.0 million common shares at a deemed price of $0.25 per share to VDL, a related party, upon execution of the definitive license. VDL will then run development budgets, designs and deliver a turnkey production facility along with a secure purchasing agreement for all of the company's production.
As a result of the aforementioned agreement, VDL will be entitled to a 5% net royalty on all production.
Company president and CEO, Sebastien Plouffe, commented, “This transaction is exactly what our shareholders needed.”
He went on to explain, “While waiting for Health Canada to issue licenses regarding Medical Marijuana in order to become a grower of premier in Medical Marijuana, we are taking a huge step to achieve our ultimate goal to generate revenues and profits by setting the company to produce other major cash crops such as Romaine lettuce and strawberries.”
Then he added, “We believe that this model will revolutionize the world in the area of food production by which a 12 months per year production will be executed without any pesticide and with very high quality products. We already have targeted the location to build the first facility and we shall execute the plan as soon as possible.”
And finally concluded, “Thanks VDL for this amazing opportunity, we are definitely building a strong and long term relation with one of the best in the industry.”
Affinor was in the news recently when the company was highlighted in Stockhouse's daily MMJ roundup yesterday.
Currently there are 35.4m outstanding shares with a market cap of $15.6 million.