The SunBlush Technologies Corporation (“SunBlush”) (CDNX:SBT.) today announced that it has agreed to sell its wholly-owned subsidiary, Frutera de San Carlos (“Frutera”), a cut pineapple processing plant in Costa Rica, to Red Crown Development Inc. (“RCD”).
The purchase price for Frutera is $2.9 million; of which $750,000 was paid on signature of the letter of intent, $1.65 million will be paid on the closing date, and the remaining $500,000 will be paid in 12 months. The transaction is expected to close on August 26th.
Frutera will become a licensee of SunBlush and will pay a royalty of 3% of gross sales for the use of the Company’s patented and proprietary technology.
“The sale of Frutera will allow us to focus on our strategy of pursuing licensing agreements for our technologies on a global basis and the development of B2B cut flower e-commerce operations. The sale represents another step away from processing in favour of the higher margin licensing and rapidly growing B2B business,” said Nigel Lees, President and Chief Executive Officer.
The Company has closed a private placement of 1.5 million common shares at a price of Cdn.$1.50 per share. The shares were placed as follows: 750,000 common shares with Mountcashel PLC. and 750,000 common shares eVestment Company PLC., each representing 4.4% of the total number of shares outstanding. Subject to regulatory approval, the Company has placed 800,000 shares of 8% convertible preferred shares convertible at Cdn $1.65 per share.
In addition, the Company has issued 110,000 common shares to Ontario Flowers Growers at a price of Cdn$1.65 per share as part of the consideration for the acquisition of Access Flower Trading Inc.
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The SunBlush Technologies Corporation is the leading provider of life extension technology and e-commerce to the high growth Fresh Produce and Flower Industry and uses its technological leadership to pursue licensing opportunities. SunBlush’s patented technologies, first developed at the University of British Columbia, naturally place produce in a state of hibernation while it is being shipped, extends the shelf life of fresh produce, thereby enabling economic distribution of premium quality vine-ripened fruit, vegetables and flowers.
Trading Symbol: SBT (CDNX and OFEX)
On Behalf of the Board The SunBlush Technologies Corporation Roy W. Robinson, Director/ Corporate Secretary
The statements in this press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are subject to the safe harbour created by these sections. Actual results may differ materially from the Company’s expectations.
The Canadian Venture Exchange has neither approved nor disapproved the contents of this news release.