In recent trading, future leader in ultramodern, highly efficient cannabis production facilities in Canada, CannaPharmaRx Inc. (OTCPink: CPMD) stock fell to $0.0755, recording a loss of -5.03% in value. CannaPharmaRx stock experienced a -24.50% decline in the last week versus a -54.49% decline in the previous month. Since selling a facility, CPMD stock has been hurting.
What was the price CPMD received for the facility?
CannapharmaRx specializes in the acquisition and development of modern CBD production facilities in Canada. CPMD is developing a 48,500 square foot cannabis grow facility and is exploring potential acquisitions. In its strategic vision, CPMD strives to become a leader in low-cost, high-quality cannabis production around the world by developing, purchasing, and enhancing existing facilities.
In a press release issued on Tuesday, CannapharmaRx announced it is selling its facility in Hanover, Ontario for $2,000,000 CAD.
- CPMD’s Hanover plant is housed on ten acres of land and includes 48,800 square feet of greenhouse.
- CPMD would not be able to fully utilize the Hanover facility since the Cremona facility is more technically advanced.
- The company’s senior management willed unanimously that CPMD should sell that asset for the most profit.
- The deal is scheduled to close on June 30, 2021.
What plans does CPMD have for the sale proceeds?
CannapharmaRx (CPMD) will significantly improve its balance sheet after closing this sale, as debt and certain liabilities will be eliminated. As a result of these transactions, CPMD can now focus on purchasing the larger facility in Cremona, Alberta, which is a pivotal asset. The sale proceeds will allow that facility to demonstrate production readiness within a short period of time as a result of working capital.