Grown Rogue Issuance of Stock Options and Shares
Momentum Public Relations
Press Release: April 5, 2019
Grown Rogue International Inc. (CSE:GRIN | OTC: NVSIF) (“Grown Rogue” or the “Company”), is pleased to announce today that stock options have been granted to two consultants of the Company to purchase up to an aggregate of 650,000 common shares of the Company. The stock options are exercisable at a price of $0.44 per share with 150,000 of the options expiring on November 30, 2021 and 500,000 options expiring on January 1, 2022. In addition, the Company also issued a total 570,500 common shares to certain directors and officers and 241,818 common shares to a consultant, in each case, as compensation for services previously provided to the Company. The above-mentioned common shares and any common shares issued pursuant to the exercise of the stock options will be subject to a four month hold period expiring on August 6, 2019.
About Grown Rogue
Grown Rogue International (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.
The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational cannabis marketplace in the United States through its indirect operating subsidiaries. Local state laws where its subsidiaries operate permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company’s business are disclosed in the Company’s Listing Statement filed on its issuer profile on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward looking information or forward‐looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Grown Rogue International Inc.
View original content: http://www.newswire.ca/en/releases/archive/April2019/05/c3397.html
Contact:
on Grown Rogue International please visit www.grownrogue.com or contact: Obie Strickler, Chief Executive Officer, obie@grownrogue.com; Jacques Habra, Chief Strategy Officer, jacques@grownrogue.com; Investor Relations Desk, Inquiries, invest@grownrogue.com
- Published in Cannabis, Grown Rogue, Marijuana, News Home
Grown Rogue Announces Binding Agreement for Michigan Cannabis Licenses and Assets
Momentum Public Relations
Press Release: February 25, 2019
Grown Rogue International Inc. (CSE:GRIN | OTC: NVSIF) (“Grown Rogue” or the “Company“), a vertically-integrated, multi-state cannabis company, with licenses and operations in Oregon and California, has signed a binding agreement which provides the Company the right to acquire operational control of certain cannabis licenses and related assets as part of its expansion into the Michigan cannabis market, pending certain regulatory approvals.
“With the second highest total number of medical cannabis card holders in the United StatesMichigan’slegalization of cannabis for adult-use presents a very large cannabis market opportunity. Significant barriers to entry at the local level add meaningful value to the limited number of municipal licenses approved,” explained Obie Strickler, CEO of Grown Rogue. “We are very diligent in our expansion strategy and in finding the right partners to take the proven Grown Rogue platform into the state. Combining our expertise enables us to efficiently navigate and comply with the regional regulatory environment and rapidly expand the Grown Rogue footprint and brand.”
Grown Rogue has entered into a binding agreement (the “Agreement“) with Blue Zebra Community LLC (“Blue Zebra“). The Agreement provides for the option to acquire operational control (the “Option“) of the following cannabis related assets in Michigan pending Municipal and State regulatory approval (the “Michigan Assets“):
- Two strategically located proposed provisioning centers (retail dispensaries) in high demand regions in Midtown Detroit and Hazel Park where limited municipal licenses have been granted.
- A proposed 19,000 sq ft indoor cultivation and processing facility in Detroit, Michigan capable of producing 1,500,000 grams of dried cannabis flower annually at full production; and
- An entity that has received multiple municipal cultivation licenses for a 28-acre parcel located in the northern portion of the lower Michigan peninsula.
Once fully licensed, the provisioning (retail) centers will offer multiple Michigan cannabis brands as well as locally produced Grown Rogue branded products for the Michigan cannabis market. This will launch the Grown Rogue brand into the Midwest region.
Upon exercising the Option by Grown Rogue, Blue Zebra (or affiliates) is required to assign its rights and obligations to the Company pursuant to a binding agreement Blue Zebra (or affiliates) has with Helios Holdings, LLC (“Helios“) which provides the framework for the acquisition of the Michigan Assets as described below (the “Helios Agreement“). As part of its Agreement with Blue Zebra, Grown Rogue will issue 2,212,876 common share purchase warrants to Blue Zebra (or its affiliates) with an exercise price of $0.44 per share (the “Warrants“), which vest according to certain milestones in accordance with the agreement with Blue Zebra.
The Warrants expire on June 20, 2023. Grown Rogue will have the right to accelerate the expiry date of 25% of the Warrants during the term if the shares of the Company close at or above $1.00 per share for a period of twenty (20) consecutive days. An additional 25% of the Warrants will accelerate if the shares of the Company close at or above $1.50 per share for a period of twenty (20) consecutive days, and the remainder of the Warrants will accelerate if the shares of the Company close at or above $2.00 per share for a period of twenty (20) consecutive days.
Pursuant to the terms of the Agreement, Grown Rogue has granted Blue Zebra, together with any affiliates, a pre-emptive right to maintain ownership, should the Warrants be exercised, of up to 5% of Grown Rogue’s common shares. At the time Blue Zebra, or any affiliates, exercises its Warrants to obtain 5% ownership in the Company, Blue Zebra will have the right to nominate one member to Grown Rogue’s board who shall be nominated by management at each annual shareholder meeting of Grown Rogue until such time the Blue Zebra’s ownership in Grown Rogue falls below 4.67%. In addition, Grown Rogue has agreed to pay Blue Zebra between 5% and 7% of top line future revenues generated from its licensed operations in Michigan. Payment on these revenues shall be in a combination of stock and cash.
Helios Agreement
Helios, and its affiliate, intend to contribute real property for a 19,000 sq ft. proposed cultivation and processing facility to a newly formed joint venture to be operated by Grown Rogue, or its designated affiliate, upon receiving all necessary regulatory approvals.
Grown Rogue intends to secure a non-dilutive, real estate financing facility to cause the improvements to the Michigan Assets to be completed.
Helios will contribute the remaining Michigan Assets into one or more newly formed operating company(s) (“OpCo“). It is intended that Grown Rogue will hold a 3.62% convertible debenture for the initial funding of OpCo, with a put/call option to acquire all the issued and outstanding shares of the OpCo. The convertible debenture principal, including any interest, shall be returned to Grown Rogue first from 50% of any cash flow generated by OpCo. Conversion of the debenture by Grown Rogue is subject to State and Municipal regulatory approval.
The State licensing and regulatory process in Michigan requires multiple tiers of approval for any operations (cultivation, retail). Several municipal licenses have successfully been awarded to Helios and its affiliates.
Once licensed by the State, the 19,000 square foot facility will be the first cultivation and manufacturing center for OpCo. Initial plans for this facility will include the ability to produce 1,500,000 grams of cannabis flower per year with the construction of a perpetual harvest facility expected to open in Q4 2019. This facility will also include best-in-class extraction facilities where the OpCo will produce branded derivative products.
The interest in the 28-acre cultivation facility can include either indoor or greenhouse operations which are currently being evaluated. Construction and operation of this facility is expected in 2019 with an anticipated yearly yield of between 1,500,000 and 2,500,000 grams of annual cannabis production based on final design plans.
Both of OpCo’s proposed retail dispensaries are located in desirable high traffic locations and are expected to be licensed and operational by Q4 2019. OpCo aims to further expand to 10 retail dispensaries and 50,000 sq ft of cultivation facilities by the middle of 2020.
“Our partnership with Grown Rogue has accelerated our operations and already we have identified several additional licenses which could make Grown Rogue one of the leading cannabis operations in the entire state of Michigan,” stated Maxim Ermakov, Helios Executive Director.
About Grown Rogue
Grown Rogue International (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.
Subscribe to Grown Rogue investor news alerts.
- Published in Cannabis, Grown Rogue, Marijuana, Medical Marijuana, News Home
Grown Rogue Expands into Michigan Cannabis Market
Momentum Public Relations
Press Release: January 15, 2019
Grown Rogue International Inc. (CSE:GRIN | OTC: NVSIF) (“Grown Rogue” or the “Company“), a vertically-integrated, multi-state cannabis company with licenses and operations in Oregon and California, has announced today the signing of a Memorandum of Understanding to expand its brand and products into Michigan through a strategic partnership with established local cannabis operators and investors. The expansion is anticipated to initially include two retail dispensaries, referred to as provisional centers in Michigan, a 19,000 sq ft indoor cultivation and processing center in Detroit, and an interest in a 28 acre parcel located in the northern portion of the lower peninsula which can be used for cultivation. Grown Rogue will make a further announcement relating to the definitive terms of the partnership which are currently being negotiated between the parties.
“We invested significant time looking for the right partners for our Michigan expansion,” stated Obie Strickler, CEO of Grown Rogue. “Our Michigan partners include executives with multi-generational leadership track records in real estate development and business investment throughout the State, as well as experienced cannabis operators.”
Strategically Located Assets
The proposed Detroit retail dispensary is strategically located in a highly desirable section of midtown Detroit in close proximity to popular Detroit sports stadiums, art centers, and central to a fast growing affluent housing district. The Hazel Park location is within ¼ mile of the busiest freeway systems in the State as well as central to several popular destination Cities in Royal Oak, Birmingham, Ferndale, and Madison Heights. Hazel Park is only issuing a total of four provisioning center licenses.
The 19,000 sq ft Detroit cultivation center is a converted warehouse that is anticipated to house two (2) Class C growing licenses that will allow up to 3,000 plants for cultivation with an estimated annual production capacity of 2500 kgs. “Our cannabis experience includes an established brand presence, compliance and regulatory, construction of best-in-class cultivation facilities and other milestones we have achieved which will serve our partnership well as we continue to expand Grown Rogue nationally,” explained Mr. Strickler.
Early Mover Advantage
Michigan recently passed adult use cannabis in November 2018 with anticipated licensing for adult use beginning in early 2020 and has the second largest medical cannabis population in the United States. According to Detroitstats.com, in 2014, over 1 million people were recorded to have used marijuana (15.6% of the population) in Michigan. While California had over 4 million residents that said they consumed marijuana in 2016 (14.9% of the population).
“There is already such a significant adoption of cannabis by the general population in Michigan that we can really hit the ground running with our established brand and proven business processes,” said Jacques Habra, Chief Strategy Officer of Grown Rogue. “This strategic partnership, in one of most exciting states in the US, continues our focus on building a multi-state cannabis company.”
The barriers to entry into the Michigan cannabis industry are high due to regulatory standards still in flux and limitations on licensing by municipality. Grown Rogue’s momentum and multiple assets provide a unique advantage.
“According to the Detroit Free Press, Michigan has the second highest medical cannabis patient population at 283,832, which is the the highest percentage per capita in the United States. We are excited to take advantage of this new market opportunity for Grown Rogue’s proven business model,” added Mr. Strickler.
About Grown Rogue
Grown Rogue International (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.
Subscribe to Grown Rogue investor news alerts.
- Published in Cannabis, Grown Rogue, Marijuana, Medical Marijuana, News Home
Grown Rogue Appoints Adam Wolf as Chief Operating Officer
Momentum Public Relations
Press Release: January 3, 2019
Grown Rogue International Inc. (CSE : GRIN) (“Grown Rogue” or the “Company“), announces the appointment of Mr. Adam Wolf as Chief Operating Officer of the Company. Mr. Wolf has extensive operational and leadership experience which includes 15 years with Hyatt/Hilton Hotels and leadership roles at Teleflora – one of the largest subsidiaries of multi-billion dollar “The Wonderful Company.” Most recently he was Chief Operating Officer for MarijuanaPackaging.com, the largest privately held packaging and supply company in the cannabis industry where he led and directed all facets of operations. He has also been responsible for overseeing sales and marketing in his executive roles, driving brand recognition and a solid track record for achieving sales growth and profitability targets.
Mr. Wolf takes over the role from Obie Strickler, CEO of Grown Rogue, who had been functioning as the Company’s interim COO. Mr. Strickler commented on the appointment, “We carefully searched for the right candidate that could bring operational management expertise coupled with understanding the fast growing cannabis industry. We have found this in Adam who has tremendous management experience and unique cannabis specific knowledge that he brings to the Grown Rogue team. ”
“I am thrilled to join an established leader in the cannabis industry in Grown Rogue,” said Mr. Wolf. “I explored several professional opportunities in the cannabis industry and Grown Rogue’s level of excellence in branding, cultivation, and most importantly expansion targets, was the difference maker. I look forward to applying my experience and knowledge to help Grown Rogue expand relationships in our existing markets and continue to scale into additional states.”
Mr. Wolf earned a B.B.A. from The George Washington University and an M.B.A. from The UCLA Anderson School of Management, where he graduated in the top of his graduating class in both programs with a focus on Strategy and Operations.
About Grown Rogue
Grown Rogue International (CSE: GRIN) is a vertically-integrated, multi-state cannabis company curating innovative products to provide consumers with their desired cannabis experiences. Each of Grown Rogue’s products and strains are categorized and marketed according their unique effects. The Company’s “seed to experience” branding conveys its vision of ensuring “the right experience, every time”. Grown Rogue is scaling its model into multiple states incorporating best in class manufacturing facilities and a proprietary distribution platform based on exclusively licensed 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 a world-renowned chocolatier.
Subscribe to Grown Rogue investor news alerts.
- Published in Cannabis, Grown Rogue, Marijuana, Medical Marijuana, News Home
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