Weyerhauser Mill site in OK Falls under new sale agreement

Mill site sale swapped

The announced sale of the old Weyerhaeuser Mill site to a cannabis production company has officially fallen through, and the mill is in the works of being sold to another buyer for a smaller price tag.  

Sunniva Inc., whose CEO Dr. Tony Holler also owns Naramata Bench's Poplar Grove and Monster wineries, announced in June 2019 that it had sold the old mill site to CannaPharmaRX for $20M.

But after months of legal entanglement, Sunniva Inc. has announced that sale has been officially axed in favour of selling to an "independent real estate investment fund."

A news release from Sunniva Inc. says the agreement will amount in gross proceeds of $9 million. Sunniva originally purchased the site for $7 million, but made significant investments in construction assets to build a 759,000 square-foot greenhouse on the 114-acre site.

A court filing from CannaPharmaRX this spring alleged that Sunniva Inc. and its numbered subsidiary still owed a total of $3.2M on their mortgage, which was part of what led to the dissolution of their sale agreement. 

Part of this new sale will go toward that mortgage.

"Following discharge of the existing mortgage on the OK Falls property and other anticipated closing costs, including legal fees and a 3 per cent commission payable to the agent for the buyer, net cash proceeds at closing to Sunniva are expected to be approximately $5.2M," reads the news release. 

Closing of the sale is still subject to the completion of due diligence by the buyer. 

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