CaliPharms, Inc. (OTCPK:KGET) signed a non-binding term sheet to acquire 51% stake in Pacific Cannabis Growers, Inc on March 16, 2017. CaliPharms executed the definitive stock purchase agreement with Pacific Cannabis Growers on March 28, 2017. Under the terms, CaliPharms will purchase 51% stock ownership of Pacific Cannabis Growers in a structured buy out over a 5 year period. The terms of the agreement are based on the profitability of Pacific Cannabis Growers. The final purchase price is based on the actual profit margin of Pacific Cannabis Growers. In the event the market conditions change in the cannabis growing industry, the agreement with the parties has the flexibility to adjust the final purchase price. The purchase price is structured to fluctuate based on actual profits calculated at the end of 12 months with a unilateral unwind provision good for 1 year. The agreement is based on a 10 times multiple in its profits and it is payable in CaliPharms preferred series stock. The preferred stock will be eligible to be sold in a leak out agreement over a 5 year period after it has been issued and aged under the applicable SEC rules. Joshua Clark, President of Pacific Cannabis Growers, is now part of the CaliPharms team. CaliPharms, Inc. (OTCPK:KGET) completed the acquisition of 51% stake in Pacific Cannabis Growers, Inc on March 28, 2017.