Grown Rogue Talks Growth Strategy in Exclusive Interview — CFN Media
Momentum Public Relations
Interview: May 13, 2019
CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry announces publication of an article and video interviewdiscussing Grown Rogue International Inc. (CSE: GRIN) (OTC Pink: GRUSF). CFN recently caught up with Jacques Habra, CSO of Grown Rogue, to discuss what sets the company apart from the competition.
Multi-state operators, or MSOs, have become increasingly common across the United States given their economies of scale. With the industry’s relatively easy access to capital, many of these MSOs have bought up assets at all costs to rapidly build a footprint. Investors may want to avoid some of these companies and seek out those that have pursued thoughtful expansion that’s more focused on return on investment and longevity.
Cannot view this video? Visit:
https://www.youtube.com/watch?v=gfpHqdAApCs
Let’s take a closer look at some of the key points in the video and why investors may want to take a closer look at the stock over the coming quarters.
‘Thoughtful Expansion’
There is no shortage of multi-state operators for investors to choose from, but many are focused on ‘growth at all costs’. While this approach may work out for a handful of companies, it could leave many shareholders extremely diluted or companies saddled with debt. The best MSO opportunities are companies that take a more thoughtful approach to the market with a focus on shareholder return on investment and high-quality portfolio companies.
Grown Rogue is a multi-state operator that’s currently in Oregon, California and Michigan. In each state, the company began by analyzing the regulatory framework to determine the optimal time to build a presence and where to focus. The team then looked for operators and partners that were already established a strong asset portfolio, as well as deal terms that provided its shareholders with a compelling return on investment.
These values have been with the company since its inception. Rather than raising millions of dollars and going on an acquisition spree, the company began as a husband-and-wife team that raised a family-and-friends round that was followed by a small seed round. The company proved its business model in Oregon and has since been sought out by experienced operators in other states looking for advice and capital to grow.
‘Cultivation to Experience’
Cultivators and distributors operate under a business-to-business model, but at the end of the day, it all comes down to the consumers. Consumer preferences and demand creates a pull for certain high-quality products and brands through the entire supply chain. This means that it’s very important for all cannabis companies-even B2B companies-to focus on cannabis consumers and maximizing their experiences.
To this end, Grown Rogue coined the term C2E, or cultivation to experience, which is a play off of the traditional seed-to-sale business model. Rather than focusing on a sale, the company focuses on the consumer’s experience of the product. The goal is to create products that elicit the right experience for consumers every time, whether it’s a better hike, less anxiety, better sleep, or less pain following a workout.
The company has focused on improving by keeping a tight feedback loop. Using direct to consumer surveys, the company has matched up its products to the right experiences and ensured made it easier for retailers to make recommendations. Interviews with intake managers and budtenders has also uncovered customer objections and helped improve product development over time.
Please follow the link to read the full article and see the full video on CFN: http://bit.ly/2JBwIWX
About CFN Media
For Visitors and Viewers
CFN Media’s Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.
For Cannabis Businesses & Companies
CFN Media is a leading agency and financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.
Our powerful digital media and distribution platform conveys a company’s message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.
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Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
Grown Rogue Contact
Jacques Habra
Chief Strategy Officer
Mobile: 805.570.6777
Email: jacques@grownrogue.com
Website: www.grownrogue.com
- Published in Cannabis, Grown Rogue, Marijuana, News Home
Canada Cobalt More Than Doubles Size of Castle Mine Land Package
Momentum Public Relations
Press Release: May 10, 2019
Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the “Company” or “Canada Cobalt”) is pleased to announce that it has added approximately 4,800 hectares to its Castle mine land package, more than doubling the total size from 29.6 sq. km to approximately 78 sq. km.
A new map of the Gowganda Camp, showing the holdings of Canada Cobalt and others, will be posted on the Canada Cobalt web site (www.CanadaCobalt.com) later today.
The additional strategic contiguous ground is to the north and northeast. Most of it (approximately 4,200 hectares) was acquired in a deal with a local prospector for $15,000 cash and 200,000 shares of Canada Cobalt, subject to the approval of the TSX Venture Exchange. The balance (approximately 600 hectares) was acquired through staking. All shares issued are subject to a four month and a day hold period pursuant to applicable Securities Laws.
Canada Cobalt eagerly anticipates providing more property results in the near future.
Qualified Person
The technical information in this news release was prepared under the supervision of Frank J. Basa, P. Eng., Canada Cobalt’s President and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada Cobalt is focused on immediate and longer-term value drivers at its past producing Castle mine and adjoining land package in the historic Northern Ontario Silver-Cobalt district, Canada’s cobalt heartland since the start of the electric vehicle revolution. The Canada Cobalt “advantage” includes underground access at Castle, an innovative tailings program with a plan to recover silver, gold and cobalt, a recently installed pilot plant to produce gravity concentrates on site, a proprietary hydrometallurgical process known as Re-2OX, and exciting exploration discovery potential at Castle East.
- Published in Canada Cobalt Works, Mining, News Home
Tetra Bio-Pharma’s Recently acquired Wholly Owned Subsidiary Panag Pharma Provides an Update on Recent Activities
Momentum Public Relations
Press Release: May 9, 2019
PANAG Pharma Inc. (PANAG), a wholly owned subsidiary of Tetra Bio-Pharma Inc. (“Tetra” or the “Company”) (TSX-V: TBP) (OTCQB: TBPMF), a bio-pharmaceutical company engaged in cannabinoid-based drug discovery and development, is pleased to provide investors with an update on the activities of PANAG including, but not limited, to its innovative and patented formulations for the treatment of uveitis which will enter Phase 2 in late 2019.
The acquisition of PANAG and the products at various stages of development, is a perfect fit for Tetra’s business model by providing a deeper pipeline of products to attract strategic commercial partners to distribute these products in Canada, the USA and around the world.
“As a result of this acquisition, we have added highly qualified experts in cannabinoid science and medicine as well as a wealth of drug discovery and early phase drug development expertise and experience. Panag and Tetra Bio-Pharma will join forces to achieve noteworthy regulatory and clinical milestones. Our long term looks very promising, the synergies of the two companies may yield attractive returns for our investors” said Dr. Guy Chamberland, CEO, CSO of Tetra.
The following Panag products will be available to consumers without a prescription from their physician (e.g., natural product section of the pharmacy) and will be made commercially available in late 2019.
The following products have already been approved by Health Canada and have received a Natural Product Number:
- Topical A, a cream for treating osteoarthritis, joint and muscle pain
- Beta C + Zinc, a gel for the treatment of Cold sores
- Beta C + Benzocaine a cream to be used in treating hemorrhoids
In June 2019, Tetra anticipates completion of Panag’s Phase 3 type clinical trial (Protocol ID: Panag-001) of its Topical-A pain cream.
This study consisted of a randomized, double-blind, placebo-controlled crossover trial with open label extension evaluating Topical-A against placebo. At the end of the randomized controlled phase of the trial all participants will be given open-label Topical-A to be administered over the subsequent 3 weeks. The Primary Endpoint was the evaluation of improvement in pain interference as measured by the Brief Pain Inventory (BPI) in individuals who are experiencing pain due to osteoarthritis of the knee. The Secondary Endpoints were: Confirmation of safety of the topical cream when used daily over 10 weeks. Further evaluation will include overall patient satisfaction with the products tested.
Repurposing Product Candidates
Tetra is currently repurposing existing topical products which will benefit from the addition of ß-caryophyllene (a powerful terpene) and the Multiplexed Molecular Penetration Enhancer (“MMPE™”), a patented technology developed by Tetra’s partner Crescita™. The MMPE™ will provide increased permeability of active ingredients through the skin thereby providing an improved delivery to the therapeutic target (joints & bones, muscles etc.).
Milestones (NPN products) | Key dates | |||
Results of Panag-001 (Topical-A) | June 2019 | |||
Ongoing negotiations with commercial partners | Summer 2019 | |||
Launch of two repurposed products (NPN) | Q1 2020 |
The following products are regulated as drugs and, if approved, will be prescribed (Rx) by physicians.
A pilot study with PPP-003 ophthalmic drug in the treatment of indolent corneal ulcers in companion animals
On May 2, 2019 Panag Pharma announced that its pilot clinical study to evaluate the tolerability and potential efficacy of its PPP003 ophthalmic drug in the treatment of indolent corneal ulcers in companion animals has been authorized by the Veterinary Drugs Directorate (VDD), Health Canada. VDD granted the Experimental Studies Certificate to the veterinary ophthalmologists that will be performing the clinical study for Panag.
Repurposing Product Candidates
Tetra is also currently repurposing existing topical prescription drug products which will benefit from the addition of ß-caryophyllene combined again with the Multiplexed Molecular Penetration Enhancer (“MMPE™”), a patented technology developed by our partner Crescita™. The MMPEÔ will provide increased permeability of active ingredients through the skin thereby providing improved delivery to the therapeutic target (joints & bones, muscles etc.).
Interstitial Cystitis Product Candidate
Panag has also developed therapies, along with intellectual property, for the treatment of interstitial cystitis. Tetra plans to start commercializing some of these products in 2020
Milestones (Drug development) | Key dates |
||||
Launch of the Veterinary Pilot Study in indolent corneal ulcers | June 2019 | ||||
Pre-IND Meeting with the FDA on the ophthalmic program | June 2019 | ||||
Launch of the Phase 1 and 2 in Uveitis and Painful Dry Eye | Q4 2019 | ||||
Filing of two repurposed (DIN) products with Health Canada | Q4 2019 | ||||
Medical food approval Interstitial Cystitis Milestone (first generation product) |
Q1 2020 |
About Tetra Bio-Pharma:
Tetra Bio-Pharma (TSX-V: TBP) (OTCQB: TBPMF) is a biopharmaceutical leader in cannabinoid-based drug discovery and development with a Health Canada authorized, and FDA reviewed, clinical trials aimed at bringing novel prescription drugs and treatments to patients and their healthcare providers. The Company has several subsidiaries engaged in the development of an advanced and growing pipeline of Bio Pharmaceuticals, Natural Health and Veterinary Products containing cannabis and other medicinal plant-based elements. With patients at the core of what we do, Tetra Bio-Pharma is focused on providing rigorous scientific validation and safety data required for inclusion into the existing bio pharma industry by regulators, physicians and insurance companies.
For more information visit: www.tetrabiopharma.com
Source: Tetra Bio-Pharma
About Panag Pharma
Panag Pharma Inc. is a Canadian based bio-tech company focused on the development of novel cannabinoid-based formulations for the treatment of pain and inflammation. Panag believes that pain relief should be safe, non-addictive and above all; effective. The Panag Pharma team of PhD scientists and medical doctors are among the world’s leading researchers and clinicians in pain treatment and management. They bring a combined experience of over 100 years in research and clinical care of people dealing with chronic pain and inflammatory conditions. Panag’s current pipeline of pain relief products include formulations for the topical application to the skin, the eye and other mucous membranes. Recently approved by Health Canada and currently undergoing clinical trials, Panag Pharma’s Topical A OTC provides a new approach to the treatment of chronic pain and inflammation.
Forward-looking statements
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the inability of the Company to obtain sufficient financing to execute the Company’s business plan; competition; regulation and anticipated and unanticipated costs and delays, the success of the Company’s research and development strategies, including the success of the products developed by Panag and its other drug candidates, the applicability of the discoveries made therein, the successful and timely completion and uncertainties related to the regulatory process including the applications for Orphan Drug Designation, the timing of clinical trials, the timing and outcomes of regulatory or intellectual property decisions and other risks disclosed in the Company’s public disclosure record on file with the relevant securities regulatory authorities. Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
Tetra Bio-Pharma Contact:
Steeve Néron
Senior Vice President Marketing & Medical Affairs.
514-232-2851
Investors@tetrabiopharma.com
- Published in Life Sciences, Medical Marijuana, News Home, Tetra Bio Pharma
Grown Rogue International Inc. Delivers Record Sales in April Boosted by Bulk Orders
Momentum Public Relations
Press Release: May 9, 2019
Grown Rogue International Inc. (CSE: GRIN | OTC: GRUSF) (the “Company“) reports record sales of approximately US$1.0m in April, more than three times the average monthly revenue achieved during the Company’s fiscal first quarter ended January 31, 2019. Sales were boosted by new bulk wholesale orders during its fiscal second quarter ended April 30, 2019.
“Grown Rogue continues to gain recognition in the hyper-competitive Oregon market at the retail dispensary level, and recently at the bulk wholesale level as well,” explained Obie Strickler, CEO of Grown Rogue. “Bulk wholesale transactions helped boost our April sales as market demand for quality product is beginning to outstrip supply in some regions. We are hearing from our accounts that sourcing product is becoming the challenge in Oregon, not finding demand for it. Our recent LOI for the acquisition of Decibel Farms was part of our solution to increase our production to meet this growing demand for our products. We believe that the previously over-supplied Oregon market – widely considered the most competitive in North America – is reaching an equilibrium which could drive prices up.”
The Company continues to explore bulk sales opportunities as it can drive large revenue gains with sound margin, but budgeting conservatively as the nature of the bulk business can be inconsistent.
Through a dual strategy of organic and acquisitive growth the Company has been expanding operations in each of the multiple States where its operations or assets exist including Oregon, California and Michigan. Organic growth in Oregon is being complemented with attractively priced acquisition targets such as the recently announced intent to acquire of Decibel Farms.
Grown Rogue’s Michigan priorities are focused on establishing a presence in the adult-use marketplace with current agreements with operational partners that include two retail dispensaries in highly coveted and limited areas (Detroit, Hazel Park) as well as a 19,000 sq ft cultivation center in a Detroit Suburb.
The Company’s California operations are anticipated to come online with Grown Rogue products available this summer. Grown Rogue’s operations in California include distribution teams in northern and southern California and a 16,000 square foot multi-use (cultivation, retail, processing) center in Eureka, California.
“Our team knows how to navigate challenging cannabis market conditions because the early days of legalization in Oregon forced us to rapidly update strategy and tactics to ensure success,” said Jacques Habra, Chief Strategy Officer for Grown Rogue. “As cannabis becomes legal in new states, operators face similar challenges which is where a proven leader like Grown Rogue can excel. This is one of the prime opportunities for our moves into new states. The timing between medical and recreational legalization, which we are now seeing in Michigan and other states we are exploring, requires tactical and effective management.”
About Grown Rogue
Grown Rogue International Inc. (CSE: GRIN | OTC: GRUSF) is a vertically‐integrated, multi‐state cannabis company curating innovative products to provide consumers with the right cannabis experience. Each of Grown Rogue’s products and strains are categorized and marketed based on unique effects and designed for the full range of a consumer’s lifestyle. Grown Rogue is scaling the vertically integrated model into multiple states by incorporating best‐in‐class manufacturing facilities and a proprietary distribution platform based on Microsoft technology. Grown Rogue’s diverse cannabis product suite includes premium flower, patent‐pending nitrogen sealed pre‐ rolls, oil and concentrates, and edibles featuring a partnership with world‐renowned chocolatier, Jeff Shepherd.
- Published in Cannabis, CBD, Grown Rogue, Marijuana, News Home
CROP Investment Holding World Farms Announces LOI to go Public on the CSE
Momentum Public Relations
Press Release: May 8, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its investment holding World Farms Corp. has signed an LOI with Graphite Energy Corp (CSE: GRE) to go public via reverse take over on the Canadian Securities Exchange. CROP currently owns 10,000,000 shares in World Farms Corp who also announced a $0.30 private placement in connection with the RTO.
On February 27th CROP divested its interest in Italian and Jamaican joint ventures in return for $2.0 million in common shares of World Farms Corp at a deemed price of $0.20 per share for a total of 10,000,000 shares.
About World Farms Corp.
WFC Farms is a private company that is building a portfolio of low cost, scalable international cannabis assets in countries where the sale of either CBD or cannabis is legal. WFC’s current portfolio includes joint ventures in Italy, Croatia, South Africa, Uruguay and Jamaica. Planting of 172 acres of High CBD Hemp is under way in Italy and Croatia for harvesting and processing to produce high quality CBD isolate for sale in to the European market. The company has also retrofitted an 87,000 square foot greenhouse with light dep curtains and LED lights for micro propagation of plant starters for the region.
CROP CEO, Michael Yorke, stated: “CROP is pleased with the expedience with which the team at World Farms Corp. has approached a go public transaction. Divesting our Italian and Jamaican assets to the team at World Farms has allowed CROP to focus and expand its operations in the USA. CROP’s sales teams with work closely with the team at World to assist them establishing customer relationships to ensure World’s successful launch in to the CBD market and the public markets as a whole.”
About CROP
Crop is publicly listed company trading under symbol CROP.CSE. The company is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 Cannabis brands.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
Vanstar Completes the Acquisition of a 2% NSR Royalty on the Nelligan Property
Momentum Public Relations
Press Release: May 8, 2019
The management of Vanstar Mining Resources (VSR – TSX.V) announces that it has completed the acquisition of a 2% NSR royalty obtained from the two original owners of the Nelligan gold property.
This 2% NSR royalty was obtained under an agreement signed in February 2017 and amended in May 2017. To obtain this royalty, Vanstar had to issue to the original holders 1.2 million shares at the signature as well as issuing two debentures for a total amount of $ 75,000 convertible into shares of the Company at the option of the holders by 2020 and bearing an annual interest rate of 10%.
On April 29, 2019, the holders of the Debentures exercised their conversion right for a total of 340,908 common shares of the Company at a price of $ 0.22. By this conversion, Vanstar thus obtains full and total clearance on this 2% NSR royalty covering the eight original claims of the Nelligan property, these claims covering a large part of all the gold zones currently known on this important gold project (Renard, Liam, Dan, 36 and Lake Eu).
On the other hand, the management of the Company also announces that IAMGOLD Corporation, Vanstar’s partner in the development of the Nelligan project, has just completed an in-fill diamond drilling program targeting the Renard Zone with approximately 17,650 meters drilled this winter for 50 holes. Results will be reported when they are received, validated and compiled.
The results of the drill holes will be used mainly to refine a first gold deposit model and improve the understanding of the Renard Zone, to support the realization of a maiden 43-101 resource estimate and to plan a future drilling program.
The Renard zone is located within a vast gold hydrothermal environment measuring 150 to 250 metres in width. The mineralization of Renard was drill intersected over a strike of more than 1 kilometre and at vertical depth of more than 350 metres and appears to be associated with a long corridor corresponding to a low magnetic anomaly crossing the property from east to west. Both drill holes NE-17-61 and NE-17-64 located from 600 metres to 1.1 kilometres west of the current Renard zone intersected this same horizon with significant gold results (See Sept 5, 2017 Press release). Furthermore, 4 kilometres west of the Renard showing, drill holes done by Bold Ventures in 2017 also intersected gold values (See March 9, 2017 Press release) in the same low magnetic anomaly horizon thus showing the potential presence of gold along this corridor.
The Renard zone remains open laterally and at depth as well are for the Liam, 36 and Dan zones, which are located between 50 and 400 meters to the south. These gold zones show the high gold potential of the Nelligan project.
Finally, following the TSX’s decision regarding the contractual agreement with Momentum PR, the option price previously granted (200,000) at $ 0.17 per share was revised upward to 0.235 $ per share.
This press release has been read and approved by Mr. Gilles Laverdière, independent geologist and qualified person according to the 43-101 standard.
The TSX Venture Exchange and its Regulation Services Provider (as that term is defined in the TSX Venture Exchange Policies) do not accept any responsibility for the truth or accuracy of its content.
Source:
Guy Morissette
CEO Vanstar Mining Resources Inc.
gmvanstar@gmail.com
819-763-5096
www.vanstarmining.com
- Published in Mining, News Home, Vanstar Mining
Mondias strengthens its management structure
Momentum Public Relations
Press Release: May 8, 2019
Mondias Naturals Inc. (“Mondias” or the “Company”) (TSXV: NHP) is pleased to announce the appointment of Mr. André Rancourt as Executive Chairman, and of Mr. Derek Lindsay as Vice President, Corporate Development, effective immediately. Mr. Rancourt was previously Chairman of the Board.
“The appointment of Mr. Rancourt as Executive Chairman clearly strengthens the structure and depth of our management,” said Jean-Philippe Gravel, Chief Executive Officer of Mondias. “Mr. Rancourt’s wealth of expertise, vast network and involvement in day-to-day strategy and operations will greatly contribute to our expansion efforts.”
“We are also pleased to have Mr. Lindsay join the Mondias team. His proven expertise in raising equity and financing projects, structuring creative strategic partnerships, increasing investor awareness and completing acquisitions will be an asset for Mondias as the Company embarks on its next growth phase,” added Mr. Gravel.
Mr. Lindsay is a seasoned financial executive with extensive international experience in accelerating the growth of emerging companies. Over the course of his career, he has been instrumental in raising significant equity and debt financing, completing acquisitions and closing strategic partnerships. Mr. Lindsay holds an M.B.A. from the Tuck School of Business at Dartmouth College and a B.A. from Middlebury College, U.S.A.
Mr. Lindsay’s responsibilities with Mondias include financing, investor relations and acquisition activities, as well as participating in the identification and assessment of new business opportunities, with the goal of accelerating the Company’s growth.
The Company also announces that the board of directors has approved the granting of 650,000 stock options to directors, officers, consultants and employees under the Company’s stock option plan. The exercise price of the options is $0.235 (the closing price of the shares on May 6, 2019). The options will vest in equal instalments over a three-year period and expire on May 6, 2029. The options and the stock option plan are subject to shareholder approval at Mondias’ annual and special shareholder meeting on June 10, 2019.
Pursuant to this stock option grant, the Company has a total of 3,600,408 stock options outstanding, which represents less than 6% of the Company’s issued and outstanding common shares.
About Mondias Natural Products Inc.
Mondias specializes in the commercialization and development of evidence-based botanical products for the health care, bio-agriculture and organic markets. The company sells both oral and topical botanical agents to help manage unmet medical needs through its Holizen Laboratories division. Mondias is also developing botanical-based specialty fertilizers for use on household plants, lawns and golf courses and in urban gardens, nurseries and greenhouses, in collaboration with McGill’s Faculty of Agricultural and Environmental Sciences.
For more information, visit: mondias.ca
- Published in Life Sciences, Mondias Natural, News Home
Grown Rogue International Inc. Announces Closing of Convertible Debenture Private Placement to Accelerate Expansion
Momentum Public Relations
Press Release: May 7, 2019
Grown Rogue International Inc. (CSE: GRIN | OTC: NVSIF) (the “Company“) is pleased to announce the closing of a non-brokered private placement (the “Offering“) of secured convertible debentures with an aggregate principal amount of $1,500,000 (the “Convertible Debentures“). The Convertible Debentures bear an interest at a rate of 2% per calendar quarter and mature on August 10, 2020. The lead investor in the Offering is an experienced private equity cannabis investment fund.
The principal use of funds will be continued expansion investment in the Michigan assets, namely one cultivation center, and two retail dispensaries – including a midtown Detroit location. Additional funds will be dedicated to go-to-market strategies in California featuring Grown Rogue branded products and wholesale products.
The Convertible Debentures are convertible into common shares of the Company (the “Common Shares“) at a conversion price that is the lesser of: (i) $0.44 per Common Share, or (ii) the lowest price for which securities of the Company are issued while such Convertible Debentures remain outstanding (the “Conversion Price“). If, within 90 days of the issuance of the Convertible Debentures, the Company fails to complete an offering of securities for gross proceeds of at least $1,000,000, then the Conversion Price shall be reduced to $0.30 per Common Share.
“Our growth has been ahead of schedule on several fronts. This financing allows us to continue expansion while fulfilling all of our current obligations,” added Obie Strickler, Co-Founder and CEO of Grown Rogue International.
On closing, the Company issued to the purchasers of the Convertible Debentures 3,409,091 common share purchase warrants (the “Warrants“). The Warrants are exercisable for a period of two (2) years from issuance into Common Shares at an exercise price equal to the lesser of (i) $0.55 per Common Share; or (ii) the lowest price for which warrants of the Company are issued while such Warrants remain outstanding. If, during the term of the Warrants, the Company issues warrants with an exercise price below $0.55 per Common Share (the “Other Warrants“), the Company will issue to the purchasers, on the same terms and conditions of the Other Warrants, additional warrants to equal the number of Warrants that would have been issued if the reduced offering price was used to calculate the number of Warrants issued.
“Creating shareholder value is our primary concern when putting investment to work and these funds will pay for immediate operations to advance our operational launch date in Michigan and our product launch date in California,” said Jacques Habra, Chief Strategy Officer of Grown Rogue International. “Building a responsible cannabis brand requires strategic investment,” continued Mr. Habra.
The Convertible Debentures and Warrants issued pursuant to this Offering are subject to a statutory hold period of four months and one day from the closing date of the Offering.
About Grown Rogue
Grown Rogue International Inc. (CSE: GRIN | OTC: NVSIF) is a vertically integrated, multi‐state cannabis company curating innovative products to provide consumers with the right cannabis experience. Each of Grown Rogue’s products and strains are categorized and marketed based on unique effects and designed for the full range of a consumers’ lifestyle. Grown Rogue is scaling the vertically integrated model into multiple states by incorporating best‐in‐class manufacturing facilities and a proprietary distribution platform based on Microsoft technology. Grown Rogue’s diverse cannabis product suite includes premium flower, patent‐pending nitrogen sealed pre‐ rolls, oil and concentrates, and edibles featuring a partnership with world‐renowned chocolatier, Jeff Shepherd.
- Published in Cannabis, Grown Rogue, Marijuana, News Home