The transaction details are as follows:
Grown Rogue increased its ownership inGolden Harvests, LLC ("Golden Harvests"), the entity that controls itsMichigan operations, operating out of an 80,000 sq ft facility that contains approximately 15,000 sq ft of flowering bench space.Canopy Management, LLC ("Canopy") holds a 60% interest in Golden Harvests and Canopy is 87% indirectly owned by the Company.- The Company purchased the total remaining minority interest in Canopy for
US$0.8M , which includes a 20% down payment in cash and monthly payments for a period of 4 years with an interest rate of 5.2% per annum. - The Company purchased 20% of the minority interest in Golden Harvests for
US$2.0M , which includes minimum quarterly payments in cash for a period of 4 years. - The transaction provides for a valuation of Golden Harvests at
US$10.0M . - All payments owing to the sellers are expected to be completed with cash on hand and cash generated from operations.
- The Company retains the option to acquire the remaining 20% of Golden Harvests at a fair market valuation.
"We are excited to announce that we increased our ownership in Golden Harvests to 80%. I would first like to thank
"
According to the
The minority interest in Golden Harvests is owned by
About Grown Rogue
FORWARD-LOOKING STATEMENTS
This press release contains statements which constitute "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward‐ looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" or similar expressions and include information regarding: (i) statements regarding the future direction of the Company (ii) the ability of the Company to successfully achieve its business and financial objectives, (iii) plans for expansion of the Company and securing applicable regulatory approvals, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward‐looking information is not based on historical facts but instead reflect the Company's management's expectations, estimates or projections concerning the business of the Company's future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws; compliance with extensive government regulation and related costs, and other risks described in the Company's public disclosure documents filed on Sedar.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable law.
The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational cannabis marketplace in
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE
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