ZA Group (OTC PINK: $ZAAG) acquires majority stake of 60% in Econic Crop Solutions and focuses on the cannabis industry.

This week is off to a good start for ZA Group which announced it has acquired a 60% majority stake in Econic Crop Solutions. The company builds and supplies indoor farming modules to grow and extract cannabis products for domestic and export markets.

Econic is located in Red Deer, Alberta where it owns a 15,000 square foot manufacturing facility that serves as a distribution center with assembly and production activities. It is mainly equipment and resources for pharmacies in the wide area to which it supplies and operates. These pharmacies handle the packaging and sales to both local customers and exporters.

The activities concern systems with portable structures that contain house culture pod equipment, culture pods and product extraction facilities. Attention will also be paid to retail purchase and shipping services for growing equipment, lighting systems for the broader domestic farming community, hybrid seed sales, nutrition systems and agronomic advice.

Both parties seem to reinforce each other

Econic is extremely excited to join ZA Group, because it believes that without the support of ZA Group it would not have been able to expand and grow with its own internal resources in a way that is now made possible.

A good development is the positive respons of the First Nations partners now that Econic will provide and manage the facilities, while the profits are shared through a fair joint venture with the (host) communities. This is accompanied by training programs and employment opportunities that the companies offer.

On the other hand, the (host) communities serve important workforces, with the aim of expanding to additional opportunities for vertical farming. The benefit Econic sees in this matter is the access to tax-free incentives and funding programs that are unique to First Nations. It’s said that more information on this will be released soon.

ZA Group has indicated that they will thoroughly search Econic’s shareholder value to identify business opportunities with high growth potential. In addition, the company is excited about the plans that Econic has shared regarding the future in this burgeoning and profitable industry. Econic currently holds several joint venture agreements to provide its services to three First Nations communities in Canada. The intention is that more opportunities will follow next year, since the collaboration between ZA Group and Econic has been announced.

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By Omar