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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

9. Property, Plant and Equipment

Cost	Land		Plant and equipment			Leasehold Improvements			Motor Vehicles			Computers			Furniture and fixtures			Capital work-in- progress			Total
Balance, December 31, 2021	$	—	$	590,011		$	1,089,694		$	47,623		$	10,124		$	4,695		$	464,253		$	2,206,400
Acquisitions (note 4)		872,336		11,817,462			—			89,513			32,703			124,360			—			12,936,374
Additions		—		108,933			66,110			10,489			13,348			3,435			108,631			310,946
Impact of loss of control of Bophelo Bio Science & Wellness (Pty) Ltd.		—		(663,404	)		(1,088,572	)		(54,767	)		(14,851	)		(5,436	)		(437,117	)		(2,264,147	)
Foreign exchange movements		12,901		282,219			(67,232	)		(603	)		1,115			2,181			(135,767	)		94,814

Cost	Land		Plant and equipment			Leasehold Improvements		Motor Vehicles			Computers		Furniture and fixtures		Capital work-in- progress		Total
Balance, December 31, 2022		885,237		12,135,221			—		92,255			42,439		129,235		—		13,284,387
Additions		434,344		—			1,502		—			412		37		—		436,295
Disposal		—		(93,002	)		—		(57,668	)		—		—		—		(150,670	)
Foreign exchange movements		35,756		459,804			36		(1,871	)		6,011		5,684		—		505,420
Balance, December 31, 2023	$	1,355,337	$	12,502,023		$	1,538	$	32,716		$	48,862	$	134,956	$	—	$	14,075,432

Accumulated depreciation	Land		Plant and equipment			Leasehold Improvements			Motor Vehicles			Computers			Furniture and fixtures			Capital work-in- progress		Total
Balance, December 31, 2021	$	—	$	174,854		$	108,623		$	23,505		$	1,206		$	464		$	—	$	308,652
Depreciation		—		972,872			—			27,883			22,942			13,490			—		1,037,187
Depreciation – Bophelo		—		32,549			49,538			6,577			20,832			463			—		109,959
Impact of loss of control of Bophelo Bio Science & Wellness (Pty) Ltd.		—		(195,441	)		(149,161	)		(28,357	)		(2,877	)		(876	)		—		(376,712	)
Foreign exchange movements		—		68,415			(9,000	)		911			(15,759	)		1,230			—		45,797
Balance, December 31, 2022		—		1,053,249			—			30,519			26,344			14,771			—		1,124,883
Depreciation		—		1,541,644			300			29,928			12,757			21,330			—		1,605,959
Disposal		—		(14,771	)		—			(36,316	)		—			—			—		(51,087	)
Foreign exchange movements		—		143,044			8			(2,767	)		5,660			2,469			—		148,414
Balance, December 31, 2023	$	—	$	2,723,166		$	308		$	21,364		$	44,761		$	38,570		$	—	$	2,828,169

Impairment	Land		Plant and equipment		Leasehold Improvements		Motor Vehicles		Computers		Furniture and fixtures		Capital work-in- progress		Total
Balance, December 31, 2022 and 2021	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Impairment		737,994		7,902,730		—		9,174		1,135		76,998		—		8,728,031
Balance, December 31, 2023	$	737,994	$	7,902,730	$	—	$	9,174	$	1,135	$	76,998	$	—	$	8,728,031

Net book value	Land		Plant and equipment		Leasehold Improvements		Motor Vehicles		Computers		Furniture and fixtures		Capital work-in- progress		Total
Balance, December 31, 2022	$	885,237	$	11,081,972	$	—	$	61,736	$	16,095	$	114,464	$	—	$	12,159,504
Balance, December 31, 2023	$	617,343	$	1,876,127	$	1,230	$	2,178	$	2,966	$	19,388	$	—	$	2,519,232

During the year ended December 31, 2022, the Company derecognized property, plant and equipment with a net book value of $1,887,435 in connection with the loss of control of Bophelo Bio Science and Wellness (Pty) Ltd. During the year ended December 31, 2021, the Company’s capital work in progress related to the ongoing civil,

gravelling, storm drainage work on site, as well as the construction of hoop houses and a Cravo A-Frame style greenhouse for future medical cannabis cultivation in Bophelo, Lesotho, was derecognized at December 31, 2022 as a result of the loss of control of Bophelo Bio Science and Wellness (Pty) Ltd (note 5).

During the year ended December 31, 2023, the Company recorded depreciation of its property, plant and equipment of $1,605,959 (2022 — $1,147,146) of which $nil (2022 — $109,959) was related to the operations of Bophelo Bio Science and Wellness (Pty) Ltd was recorded within discontinued operations.

During the year ended December 31, 2023, the Company sold some of its equipment held in Portugal and recognized a loss on disposal of $4,495 in the consolidated statements of loss and comprehensive loss.

Pursuant to the Company’s upcoming sale of RPK (note 23), its Portuguese subsidiary, the Company impaired a portion of its property, plant and equipment and recognized an impairment loss of $8,728,031 in the consolidated statements of loss and comprehensive loss during the year ended December 31, 2023.

1900 Ferne Road, Gabriola Island, British Columbia

On September 19, 2023, and as amended on September 22, 2023, the Company entered into an option agreement with 1107385 B.C. Ltd (“1107385”) to purchase farming land property and related operations and licenses from 1107385. To acquire the property, the Company must pay the following:

A. The Company will issue a non-refundable payment equal to $1,800,000 and if paid in common shares of the Company will be based on formula to calculate the per share price as set forth in the agreement. The payment will be broken up into following:

• the First Option Payment, upon signing (issued 879,895 with a fair value of $431,149) (note 15)

• the Second Option Payment, 15 days after signing (paid $600,000 subsequently) (note 23)

• the Third Option Payment, 30 days after signing (paid $600,000 subsequently) (note 23)

This buys the Company the right to develop the property for two years. The Company plans during this time period to develop Tetrahydrocannabinol (THC) and CBD facilities at this site.

B. Additional payments will be made based upon milestones achieved from the development. Further payment milestones include:

• Upon approval or a license for THC cultivation on the property from the applicable regulatory authority, $500,000 will be paid to the Owner.

• Upon sale of THC product cultivated from the property, $500,000 will be paid

• Upon Hemp cultivation approval from the application regulatory authority, $750,000 will be paid

• Upon CBD cultivation approval from the application regulatory authority, $750,000 will be paid