CROP Subsidiary Enters 5 Month CBD Isolate Supply Agreement With BIOSCIENCE ENTERPRISES, INC.
Momentum Public Relations
Press Releases: May 30th, 2019
CROP INFRASTRUCTURE CORP. (“CROP” or the “Company”) (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announces today that ELITE VENTURES GROUP, LLC (“Elite”), a Nevada limited liability company in which CROP holds a 49% membership interest, in partnership with its licensee THE HEMPIRE COMPANY, LLC (“Hempire” and, together with Elite, “Elite & Hempire”), has entered into a supply agreement (the “Supply Agreement”) with BIOSCIENCE ENTERPRISES, INC. (“Bioscience”), a California based cannabidiol (“CBD”) isolate distribution company, to supply Bioscience with an aggregate of USD$89,500,000 in CBD isolate, with deliveries required to commence in November, 2019 and ending in March 2020, upon completion of the Supply Agreement’s initial five-month term (the “Initial Term”).
Pursuant to the terms of the Supply Agreement, Elite & Hempire have agreed to provide certain amounts of CBD isolate, on a monthly basis, to Bioscience on an agreed upon per kilogram price in consideration for:
- a USD$525,000 deposit payable upon entry of the Supply Agreement (paid);
- a second deposit of USD$350,000 due within thirty (30) days of entry of the Supply Agreement; and
- USD$875,000 due upon confirmation of the first Shipment (the “Third Deposit” and, collectively, the “Deposits”).
The Deposits are to be applied against the balance of first Shipment. In the event Elite & Hempire fail to deliver the first Shipment, Bioscience is entitled, at its sole discretion, to either the full repayment of the Third Deposit or have the proceeds of Third Deposit converted into common shares in the capital of CROP (each, a “Share”) at a price discounted 20% to the closing market price of the Shares on November 15, 2019, subject to a floor of $0.30 per Share.
Prior to each Shipment, Bioscience shall deposit 10% of the value of the CBD isolate of the subject Shipment (USD$1,900,000) into an escrow account held by Bioscience. The balance of each Shipment (USD$17,100,000) is due and payable within thirty (30) days of the receipt (“NET 30”), by the parties, of testing results for heavy metals, residuals, pesticides and microbial content in addition to a minimum 99.5% purity rating. The CBD isolate is to be sent for testing within three (3) business days of its delivery to Bioscience’s distribution center. During the NET 30 period, Elite & Hempire shall maintain title of the CBD isolate.
All proceeds generated from the sale of the CBD isolate to Bioscience under the Supply Agreement are to be distributed among the members of Elite pro rata to each members’ respective membership interest (approximately USD$43,855,000 for CROP’s 49% membership interest in Elite).
Bioscience has the sole right to extend the Initial Term for an additional two months (until May, 2020) on the same terms disclosed above (an additional USD$38,000,000 in value). The total anticipated value of the Supply Agreement, if the Initial Term is extended, is expected to be approximately USD$131,500,000.
Elite’s Nye County, Nevada CBD farm spans approximately 2,200 acres with 1,350 acres under pivot irrigation using organic growing methodologies. The 2019 cultivation is expected to produce 10-20% CBD genetic hemp-CBD which is expected to be extracted and isolated to produce a minimum 99.5% pure CBD isolate. Based on calculations of the Company’s grow consultant and assuming a minimum average of 10% CBD content, the Supply Agreement will represent ~35% of the farm’s potential CBD isolate yield from its 2019 cultivation. The parties plan to work together not just within the parameters of the Supply Agreement, but also to expand the Supply Agreement to include new high-yield cannabinol (“CBN”) and cannabigerol (“CBG”) isolates in order to provide new SKUs for Bioscience and to help foster a long-term partnership for the Company, its subsidiaries and stakeholders.
In connection with the Supply Agreement, CROP has agreed to pay an introduction fee of 1,333,333 Shares at a deemed price of CAD$0.30 per Share to a third party finder who introduced Elite & Hempire to Bioscience. All securities issued in connection with the Supply Agreement are conditional upon the approval of the Canadian Securities Exchange (“CSE”) and will be subject to a statutory hold period of four months and a day.
Richard Parker, President of Bioscience stated: “We are thrilled to be working with such an innovative group as CROP on a partnership that we hope will flourish within the progressing CBD industry. Having the best products on the market is what we believe makes Bioscience stand out as a reputable supplier, and without producers like CROP that would not be possible.”
Michael Yorke, CEO of CROP stated: “While the monetary value of the Supply Agreement is significant for CROP and its stakeholders, the relationship we are building with the team at Bioscience is key to our continual efforts to become a key player in the CBD production space and the development of new strains of product for isolation which will complement Bioscience’s industry-leading clientele and what both Bioscience and CROP believe will be in demand in 2020, 2021 and far beyond.”
About Bioscience
Since its inception in 2018, Bioscience has emerged as a major contender in the CBD supply business. Native to California, Bioscience has contracts across the continental USA and Canada for the supply of European Union and domestic grade isolate, oil and aerosol CDB in white label or specialized labeled products. Bioscience prides itself on having the purest CBD supply on the market today brought through a world class quality assessment and quarantine process.
About CROP
CROP is a publicly listed company trading on the CSE under the symbol CROP. The Company is focused on owning a portfolio of cannabis branding, CBD and real estate assets through its wholly and partially-owned subsidiaries. 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 share equity in various companies 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
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
North Bud Farms Arranges Private Placement Financing and Provides Corporate UpdateMomentum Public Relations Press Release: May 15, 2019
Momentum Public Relations
Press Release: May 15, 2019
North Bud Farms Inc. (CSE: NBUD) (OTCQB: NOBDF) (“NORTHBUD” or the “Company”) announces a non-brokered private placement of up to 13,333,333 units, at a price of $0.30 per unit, for gross proceeds of up to $4 million. Each unit will be comprised of one common share of the Company and one common share purchase warrant. Each warrant will entitle the holder to acquire an additional share at a price of $0.40 for a period of 24 months from the date of closing of the offering. Insiders of the Company have demonstrated their commitment to the continued success of the Company by committing to a lead investment of $1 million in the proposed offering. The Company plans to use the net proceeds of the offering to hire additional staff for its Canadian operations, pursue M&A opportunities in the United States, including new state license applications, and for general working capital purposes.
“These funds will be essential to fund ongoing acquisition efforts in the United States and prepare our Canadian production facility for operations,” said Ryan Brown, CEO of North Bud Farms.
The offering is expected to be completed on or before May 31, 2019, subject to the receipt of all necessary regulatory approvals. All securities issued pursuant to the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.
As mentioned, certain directors, officers and other insiders have committed to participate in the offering. Accordingly, any such participation would be considered a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on the exemptions from the formal valuation requirements and majority of the minority shareholder approval requirements of MI 61-101 contained in Section 5.5(a) and Section 5.7(1)(a) in respect of any such related party transaction on the basis that the fair market value of the transaction does not exceed more than 25% of the Company’s market capitalization. The Company expects to file a material change report in respect of any related party transaction on SEDAR prior to the closing of the offering, the whole as required by MI 61-101.
Eureka Vapor LLC Update
The Company is pleased to update shareholders on the status of its planned strategic acquisition of multi-state licensed operator, Eureka Vapor (“Eureka”), as the companies continue to work towards completing a definitive agreement. Based on projected timelines for the completion of the audit of Eureka’s financial statements, the companies expect to sign a definitive agreement in the third quarter of the 2019 calendar year.
“We are excited to be joining forces with NORTHBUD to drive strong long-term revenue growth in both Canada and the United States,” said Justin Braune, CEO of Eureka Vapor. “The Eureka team continues to evaluate synergistic acquisitions in multiple U.S. states to expand both the Eureka Vapor and NORTHBUD brands post-closing of our transaction.”
Corporate Update
The Company is in the final stages of preparation for submission of the required evidence package to Health Canada for its cannabis production facility located in Low, Quebec. Consultants have scheduled the evidence package for the end of June and it will be submitted to Health Canada upon its completion.
“We are very excited to be nearing completion of this project,” said Ryan Brown, CEO of North Bud Farms. “We are equally encouraged by recent changes in the application process that will allocate more resources to companies who are operationally ready. The Company will provide an update post submission of the evidence package.”
About North Bud Farms Inc.
North Bud Farms Inc., through its wholly owned subsidiary GrowPros MMP Inc., is pursuing a licence under The Cannabis Act. North Bud Farms Inc. is constructing a state-of-the-art purpose-built cannabis production facility located on 95 acres of Agricultural Land in Low, Quebec. North Bud Farms Inc. will be focused on Pharmaceutical and Food Grade cannabinoid production in preparation for the legalization of edibles and ingestible products scheduled for October 2019.
For more information visit: www.northbud.com
Neither the Canadian Securities Exchange (the “CSE”) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Certain statements and information included in this press release that, to the extent they are not historical fact, constitute forward-looking information or statements (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “may”, “should” and similar expressions to the extent they relate to the Company or its management. Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risk factors included in the Company’s final long form prospectus dated August 21, 2018, which is available under the Company’s SEDAR profile at www.sedar.com. Accordingly, readers should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company’s management to predict all of such factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statements to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws. This news release does not constitute an offer to sell or a solicitation of any offer to buy any securities of the Company.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
North Bud Farms Inc.
Edward Miller
VP, IR & Communications
Office: (855) 628-3420 ext. 3
investors@northbud.com
Grown Rogue Announces Ticker Symbol GRUSF on OTC Exchange
Momentum Public Relations
Press Release: May 14, 2019
Grown Rogue International Inc. (CSE: GRIN | OTC: GRUSF) (the “Company” or “Grown Rogue“) reports that the Financial Industry Regulatory Authority (FINRA) has accepted Grown Rogue’s request for a ticker symbol change on the Over the Counter Bulletin Board (OTCBB) from “NVSIF” to “GRUSF”. The Company’s symbol on the Canadian Securities Exchange (CSE) remains unchanged as “GRIN” for Grown Rogue International, Inc. There is no action required by current shareholders in connection with this change.
“An increasing number of United States based investors are looking for investment opportunities in the cannabis sector such as Grown Rogue and our symbol name change on the OTC to GRUSF (Grown Rogue United States) provides improved clarity for US investors looking to buy shares of Grown Rogue which are listed on the CSE,” said Obie Strickler CEO and Co-Founder of Grown Rogue. “In addition to the CSE we are now quoted in US dollars on the OTC for US investors under our new symbol “GRUSF”.
Grown Rogue is now operating or managing assets in three States: Oregon, California, and Michigan. The symbol name change follows the Company’s reverse takeover in November, 2018. The Company indicated no immediate plans to establish the stock for trading on additional exchanges, though the Company anticipates that a Frankfurt listing could soon be in the works.
“Most of our investors are US-based, and increasingly more retail US-based investors have been reaching out through our website and social media channels asking about how they can participate in our growth,” said Jacques Habra, Chief Strategy Officer of Grown Rogue.
Mr. Habra continued, “We have a dedicated office to investor relations that is based in Santa Barbara, California. We expect to hold investor conference calls and eventually an investor only conference as we continue to scale the company across the Country.”
Grown Rogue recently announced the intent to acquire Decibel Farms, owners of the Loud Cannabis Brand, and also announced record monthly revenue of just over $1.01 MM for April, 2019.
“Our vision is that our brand and ticker symbol will be synonymous with a responsible cannabis company focused on value creation,” added Mr. Strickler.
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, Grown Rogue, Marijuana, News Home
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.
Since 2013, CFN Media has enabled the world’s preeminent cannabis companies to thrive in the capital and public markets.
Learn how to become a CFN Media client company, brand or entrepreneur:http://www.cannabisfn.com/featuredcompany
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
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
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