Momentum Public Relations
Press Release: October 18, 2018
Crop Infrastructure Corp. (CROP:CSE) has adopted a warrant exercise incentive program, designed to encourage the early exercise of the company’s 17,439,055 outstanding common share purchase warrants with exercise prices and expiry dates as set out in the attached table.
Exercise Price Expire Date 2019-11-02 0.55 2020-06-20 0.75 2019-06-02 0.50 2019-12-11 0.50
The Program will be open for a 17-day period (the “Early Exercise Period”) beginning on October 17, 2018 and ending on November 2, 2018.
Pursuant to the Program, the Company is offering an inducement to each eligible holder of the Warrants (collectively, the “Warrant Holders”) that exercises the Warrants during the Early Exercise Period that consists of:
a reduced exercise price of $0.40 per common share; and
an additional common share purchase warrant (each an “Incentive Warrant”) for each Warrant exercised, with each Incentive Warrant entitling the Warrant Holder to purchase one additional common share of the Company until 5:00 p.m. (Vancouver time) on such date as is two years from the date of issuance of the Incentive Warrant at a price of $0.50 per common share.
The Company expects to use any proceeds received as a result of the Program for increasing the yield and efficiencies of each of its properties, development of retail outlets, project financing and general corporate purposes.
If Warrants are not exercised prior to the end of the Early Exercise Period or if a warrant holder does not qualify to receive Incentive Warrants, the Warrants will remain outstanding and continue to be exercisable on the same terms applicable to such Warrants as they existed prior to the Program.
The terms and conditions of the Program and the method of exercising Warrants pursuant to the Program will be set forth in a letter to be delivered to each warrant holder that the Company contacts. Warrant holders who wish to participate in the Program will agree to exercise their Warrants and deliver the other necessary documents in consideration of the issuance by the Company of the Incentive Warrants.
Only holders of Warrants who are “accredited investors” under applicable Canadian securities laws or who provide satisfactory evidence that they meet the requirements of an alternative exemption from the prospectus requirements of applicable Canadian securities laws may participate in the Program. U.S. holders of the Warrants are not eligible to participate in the Program. The Incentive Warrants will be subject to a four-month hold period from the date of the Incentive Warrant issuance pursuant to applicable Canadian securities laws. No fractional Incentive Warrants will be issued and the number of Incentive Warrants to be issued shall be rounded down to the nearest whole number.
The Company further announces that it has settled $570,000 in debt to multiple debtors for 1,200,000 common shares of the Company at a deemed price of $0.475 per common share. These common shares are subject to a 4 month hold period.
All numbers in Canadian dollars unless otherwise noted
About CROP
Crop Infrastructure Corp. is publicly listed on the Canadian Securities Exchange and trades under the symbol “CROP” and in the US under the symbol “CRXPF”. CROP is primarily engaged in the business of investing, constructing, owning and leasing greenhouse projects as part of the provision of turnkey real estate solutions for lease-to-licensed cannabis producers and processors offering best-in-class operations. The Company’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada Cannabis farm, a 1,865 acre CBD farm, extraction in Nevada with international focuses in Jamaica and Italy and a joint venture on West Hollywood and San Bernardino dispensary applications.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage, US and Italian distribution rights to over 55 cannabis topical products and a portfolio of 16 Cannabis brands.
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