Vancouver, Candada--Chemistree Technology Inc. announced in a news release that it had negotiated the conditional sale of its Washington state subsidiary.
The Company has executed a Share Purchase Agreement with an arms-length party, whereby the Company, under certain circumstances, would sell 100% of its Washington Assets via the sale of a subsidiary, Chemistree Washington, to the other party in exchange for consideration of $US 500,000 ($644,563).
Closing of the sale is subject to several conditions, including the transfer of a Tier 3 recreational marijuana producer/process license from the Company's sub-lessee to the purchaser. Closing is anticipated to occur within calendar Q4 2022.
Douglas Ford, Chemistree's CFO, commented in a news release. "The Company has been evaluating strategic alternatives for its Washington State assets for several months. The protracted downturn in the cannabis sector generally, and specifically in mature markets where supply has overcrowded demand, licensees are struggling to maintain gross margin. The Company has seen the ability to raise additional financing effectively cease, a fact that provided additional motivation to reassess the cannabis industry as a core focus overall."