Grown Rogue finalizes debt settlement
MEDFORD, Oregon., June 20, 2022 /CNW/ – Cultivated Rogue International Inc. (“Grown Thief“or the”Company“) (CSE: GRIN) (OTC: GRUSF), a multi-state cannabis company with operations and assets in Oregon and Michigan, today announced the transfer of its ownership in Plant Based Investment Corp. (“PBIC”) to 2766923 Ontario Inc. (the “Creditor”) in exchange for debt settlement. PBIC had previously loaned the Company $700,000 (the “Debt”), against a commitment of $800,000as announced on September 9, 2021, under an unsecured promissory note (the “Note”). PBIC subsequently sold and assigned the note to the creditor. The Company has entered into an agreement with the creditor to transfer its ownership of 2,362,204 common shares of PBIC (the “PBIC Shares”) to the creditor in exchange for the surrender and settlement of all amounts due to the creditor in connection with the note. The Note will automatically terminate upon Creditor’s receipt of the PBIC Shares and will cease to have any force or effect. This transaction will result in a gain on the Company’s third fiscal quarter financial results.
The settlement of the note, combined with the restructuring of the 30,000 square foot indoor facilities agreement with Acreage Holdings Inc., as announced on April 19, 2022reduced the Company’s 2022 cash payments from $2.45M.
“We are pleased to reach a settlement agreement on this note,” said Obie Strickler, Chief executive officer. “This settlement, combined with the restructuring of the Acreage facility, significantly reduces our cash payments for 2022 and strengthens our already strong balance sheet, allowing us to continue to grow our Michigan installation and focusing on new products and genetics. The almost $300,000 the gain that will appear on our fiscal third quarter results will result in what we expect to be our fifth consecutive quarter of positive net income.”
About Grown Rogue
Cultivated Rogue International (CSE: GRIN | OTC: GRUSF) is a vertically integrated family of multi-state cannabis brands whose mission is to inspire consumers to “enhance experiences” through cannabis. We have combined an expert management team, an award-winning growth team, state-of-the-art indoor and outdoor manufacturing facilities, and product categorization based on consumer insights, to create innovative products carefully selected from “the seed to experience”. The Grown Rogue family of products includes premium indoor and indoor blooms, as well as nitro-sealed indoor and indoor pre-rolls and jars.
This press release contains statements that constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the Company’s current plans, intentions, beliefs and expectations with respect to the business future business. Forward-looking information is often identified by the words “may”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, ” expect” or similar expressions and include information regarding: (i) statements regarding the Company’s future direction (ii) the Company’s ability to successfully achieve its business and financial objectives, (iii) the Company expansion plans in Michigan and the receipt of applicable regulatory approvals, and (iv) expectations regarding other economic, business and/or competitive factors. Investors are cautioned that forward-looking information is not based on historical fact but rather reflects the Company’s management’s expectations, estimates or projections regarding the business of future results or events of the Company based on opinions, assumptions and management’s estimates believed to be 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 financial markets; and in particular in the Company’s ability to raise debt and equity in the amounts and at the costs it anticipates; adverse changes in public perception of cannabis; declines in the prevailing prices of cannabis and cannabis-based products in the markets in which the Company operates; adverse changes in applicable laws; or adverse changes in the application or enforcement of applicable laws; compliance with extensive government regulations and related costs, as well as other risks described in the Company’s public disclosure documents filed at www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may differ materially from those described herein as anticipated, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be those anticipated, estimated or planned. The Company does not intend and undertakes no obligation to update this forward-looking information, except as otherwise required by applicable law.
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including all statements that are not statements of historical fact regarding the intention, belief or expectations of the Company, its directors or its officers regarding, among other things: (i) the financing plans of the Company; (ii) trends affecting the Company’s financial condition or results of operations; (iii) the Company’s growth strategy and operating strategy; and (iv) declaration and payment of dividends. The words “may”, “would”, “shall”, “expect”, “estimate”, “anticipate”, “believe”, “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Further, forward-looking statements represent the beliefs and assumptions of our management only as of the date hereof. Except as required by law, we undertake no obligation to update these forward-looking statements publicly, or to update the reasons why actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Investors are cautioned that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the statements. forward-looking as a result of various factors, including the risk disclosed in the company’s Forms 20-F and 6-K filed with the Securities and Exchange Commission.
The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational cannabis market in United States through its indirect operating subsidiaries. Local laws in the state where its subsidiaries operate permit such activities, but such activities are currently illegal under United States federal law. Additional information regarding this risk and other risks and uncertainties relating to the Company’s business is disclosed in the Company’s registration 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 any forward-looking information or statements prove incorrect, actual results may differ materially from those described herein as anticipated, planned, anticipated, believed, estimated. or expected.
No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein.
SOURCE Cultivated Rogue International Inc.
For more information: About Grown Rogue International, please visit www.grownrogue.com or contact: Obie Strickler, Managing Director, [email protected]; Investor Relations Office requests, [email protected](458) 226-2100