Canadian hemp company buys stake in German growing operation

A Canadian hemp company has bought a 5% ownership stake in a German hemp company with an outdoor growing operation of more than 1,200 acres.

EuroLife Brands, based in Toronto, said it is issuing 500,000 common shares valued at $250,000 and a cash payment of $35,000 for its initial stake in Farmhus GmbH.

As part of the deal, EuroLife has the right to increase ownership in Farmhus GmbH to up to 20%.

Farmhus GmbH has a “state-of-the-art outdoor hemp facility” near Dresden and approximately 110,000 kilograms of existing hemp biomass, already harvested and processed, in its storage inventory. The company also has specialized harvesting and cleaning machinery, as well as drying machinery and drying rooms.

EuroLife said in its news release its goal is “to become amongst the largest health and wellness companies in Europe.”

In April, it announced plans to acquire 100% of the issued and outstanding securities of CWE, a Canadian company that owns and operates six retail locations in Germany and one in Luxembourg.

EuroLife trades on the Canadian Securities Exchange as EURO.