SOL Worldwide to Concentrate Sources and Investments on Expanding Florida Marketplace And Its Acquire of California Premium Cultivator Northern Emeralds
MCP Wellness To Repay All $12.five Million Sophisticated By SOL Worldwide and CannCure
TORONTO, Nov. 27, 2019 /CNW/ – SOL Worldwide Investments Corp.’s (“SOL Worldwide” or “Enterprise“) (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB) portfolio firm CannCure Investments Inc. (“CannCure“), owner/operator of the licensed Florida healthcare marijuana remedy center 1 Plant (previously named as three Boys Farms) and proposed purchaser of the famed California craft cannabis cultivator ECD Holdings, Inc., d/b/a Northern Emeralds (“Northern Emeralds“), right now announced it has entered into a mutual termination agreement and promissory note with MCP Wellness to terminate the binding letter of intent (the “Binding LOI”) dated April 23, 2019 whereby the Enterprise was to obtain 100% of the stock of MCP Wellness (“MCP“) for $35 million in money and US$115 million in equity consideration in CannCure.
MCP is the Merida Capital Partners affiliate that owns the rights to personal 3 Michigan cultivation licenses, a processing license, 9 licensed and operating provisioning centers (“dispensaries”), and six extra dispensary licenses, providing it the biggest retail footprint in the state of Michigan.
Each MCP and the Enterprise have recognized that present marketplace circumstances do not assistance a transaction of this size, and each parties and their respective shareholders are greater served focusing capital and sources on constructing out their respective enterprises. SOL Worldwide will stay focused on the scale up of its swiftly expanding Florida operations by way of 1 Plant Florida, and MCP will concentrate on opening extra dispensaries and launching a cultivation facility in Michigan.
With each other, SOL Worldwide and MCP have determined that although they are terminating their LOI to merge due to ongoing marketplace circumstances, they will continue to perform with each other towards finalizing a strategic licensing agreement whereby MCP Wellness would engage Northern Emeralds to deliver cultivation and processing regular operating procedures to MCP for a to be agreed upon royalty (topic to the receipt of all regulatory approvals). As MCP Wellness builds its cultivation footprint to go with its nine operating Dispensaries, a strategic agreement with Northern Emeralds to introduce the highest good quality flower probable will be instrumental in establishing it as one particular of the biggest vertically integrated operations in Michigan.
As aspect of the amicable termination, the $12.five million sophisticated by SOL Worldwide and its wholly owned subsidiary CannCure to MCP Wellness will be repaid in complete more than the subsequent twelve (12) months in month-to-month installments and two balloon payments at the six and 12 month time frames. When the promissory note is outstanding, CannCure will have the choice to obtain specific assets from MCP Wellness, convert any amounts due into stock in the Michigan operator, or total the initially contemplated transaction on substantially comparable terms. Any transactions contemplated herein are topic to regulatory approval.
The Enterprise wishes to announce that the board of directors have resolved to adjust the Company’s fiscal year-finish from March 31st to November 30th, successful instantly. By moving the Company’s reporting cycle to a non-calendar quarter basis, the Enterprise aims to decrease the time constraints and administrative expenditures related with obtaining the identical calendar quarterly reporting cycle as most other reporting issuers and to align its monetary year-finish with other connected corporations. The notice for the year-finish adjust needed beneath National Instrument 51-102 has been filed beneath the Company’s profile on www.sedar.com.
As a outcome, the Enterprise will report audited monetary benefits for an eight-month transitional fiscal year from April 1, 2019 to November 30, 2019 with a comparative of twelve-month audited monetary statements from April 1, 2018 to March 31, 2019. Afterwards, the Enterprise will revert to a customary quarterly reporting calendar primarily based on a November 30th year-finish, with fiscal quarters ending on the final day in February, May possibly, August and November every year. The adjust in the Company’s monetary year finish is topic to approval by the Canada Income Agency.
About SOL Worldwide Investments Corp.
SOL Worldwide is an international investment firm with a concentrate on, but not restricted to, cannabis and cannabis connected corporations in legal U.S. states, the hemp and CBD marketplaces and the emerging European cannabis and hemp marketplaces. Its strategic investments and partnerships across cultivation, distribution and retail complement the company’s R&D system with the University of Miami. It is this complete strategy that is positioning SOL Worldwide as a future frontrunner in the United States’ healthcare cannabis sector.
Advisory on Forward-Seeking Information and facts
This press release includes “forward-searching information” inside the which means of applicable securities laws. All statements contained herein that are not clearly historical in nature may well constitute forward-searching info. In some circumstances, forward-searching info can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the unfavorable of these terms, or other comparable words, expressions and grammatical variations thereof, or statements that specific events or circumstances “may” or “will” come about, or by discussions of method. The forward-searching info contained herein involve, but are not restricted to, info relating to the Enterprise‘s strategic plans and enterprise.
By nature, forward-searching info is topic to inherent dangers and uncertainties that may well be common or precise and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be correct, that assumptions may well not be appropriate and that objectives, strategic targets and priorities will not be accomplished. A assortment of aspects, such as recognized and unknown dangers, quite a few of which are beyond our manage, could result in actual benefits to differ materially from the forward-searching info in this press release. Such aspects involve, but are not restricted to: the Company’s potential to comply with all applicable governmental regulations in a hugely regulated enterprise investing in target corporations or projects which have restricted or no operating history and are engaged in activities at the moment viewed as illegal beneath US federal laws alterations in laws restricted operating history reliance on management specifications for extra financing competitors inconsistent public opinion and perception with regards to the healthcare-use and adult-use marijuana sector and regulatory or political adjust. Extra threat aspects can also be discovered in the Company’s present MD&A, which has been filed on SEDAR and can be accessed at www.sedar.com.
Readers are cautioned to look at these and other aspects, uncertainties and possible events cautiously and not to place undue reliance on forward-searching info. The forward-searching info contained herein is created as of the date of this press release and is primarily based on the beliefs, estimates, expectations and opinions of management on the date such forward-searching info is created. The Enterprise undertakes no obligation to update or revise any forward-searching info, whether or not as a outcome of new info, estimates or opinions, future events or benefits or otherwise or to clarify any material distinction among subsequent actual events and such forward-searching info, except as needed by applicable law.
Supply SOL Worldwide Investments Corp.
For additional info: SOL Worldwide Investments Corp.: Brady Cobb, CEO, Telephone: (212) 729-9208, E mail: [email protected] For media inquiries, please speak to: Davis Richardson, AMWPR, P: 212.542.3146, E: [email protected]
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