Grown Rogue International Inc., a cannabis management company, has recently announced the acquisition of Golden Harvests, LLC’s 60% controlling interest by its partner, Canopy Management, LLC.
Furthermore, Grown Rogue’s CEO, Obie Strickler, has provided its wholly-owned subsidiary, Grown Rogue Unlimited, LLC, a right to obtain 87% of membership units of the Canopy pending state as well as regulatory approval. Additionally, Canopy had filed all the required paperwork and received both state and local approval to acquire 60% of the controlling interest in Golden Harvests. Grown Rogue Unlimited is expected to exercise an option to obtain 87% of membership units of Canopy by 2021 end.
As per the statement made by Obie Strickler, the team at Grown Rogue has implemented the best-in-class SOPs as well as leveraged its decade-long operational and sales experiences. The company has also gained a market share in Michigan and has been witnessing strong growth across the region. It is excited to finalize the upcoming transaction to continuously deliver consistent and quality products to consumers and retailers alike.
Nearly 25,000 sq. ft. of the Golden Harvests Facility is presently online with 7 separate flower rooms, clone, vegetative, packaging, trimming, & other infrastructures required to develop an advanced cultivation facility. The company has applied for 4 additional licenses, apart from its existing 4 licenses, to construct 6 more flower rooms in 2021, which is in line with its target to meet the escalating demand for its branded, nitrogen-sealed flower jars.
As per the financial terms of the agreement, Canopy will pay an aggregate of $660,000 in cash to the existing Golden Harvests’ members, which will result in Grown Rogue issuing its 600,000 common shares in 3 tranches:
- Tranche 1: $200,000 in cash & 200,000 shares due 6th February 2021, which was extended for 1 year
- Tranche 2: $260,000 in cash & 200,000 shares due 6th February 2021, which was extended to 6th August 2021
- Tranche 3: $200,000 is due at exercising the option with 200,000 shares that has been satisfied in full