SOL Global Portfolio Company CannCure Closes $15 Million USD Construction Loan to Expand One Plant Florida
SOL Global Investments Corp. (“SOL Global” or the “Company“) (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB) is pleased to announce that CannCure Investments Inc. (“CannCure“), a portfolio company of SOL Global, has secured a USD$15,000,000 construction loan from Advanced Flower Capital to fund the construction and development of a new, state-of-the-art, 88,327 square foot tilt-up indoor cultivation, processing and lab facility in Indiantown, Florida for CannCure’s One Plant Florida (formerly 3 Boys Farm, LLC). One Plant is a medical marijuana treatment center in the State of Florida licensed by the Florida Department of Health, Office of Medical Marijuana Use. The construction loan will be secured by a mortgage and other commercially-common security interests.
The new indoor facility, to be located on One Plant’s existing Indiantown, Florida property, will include individual flowering rooms, post-harvest processing rooms, advanced curing rooms, a full extraction and research and development lab, a kitchen, trim and packaging rooms, research and development cultivation rooms, and storage and administrative space. The new facility will be directly adjacent to One Plant’s 54,000 square-foot Nexus Greenhouse in Indiantown. One Plant anticipates the greenhouse will commence full operations before the end of the first quarter of 2020, subject to the receipt of all required regulatory approvals from the Florida Office of Medical Marijuana Use.
Nexus Greenhouses, manufactured by the renowned Colorado-based company, Nexus Greenhouse Systems, utilizes modern, state-of-the-art agricultural technology combined with a high-yield growing approach to produce indoor-style cultivated flower with less demand on energy resources. One Plant Florida’s own 54,000 square foot Nexus greenhouse was designed to include ten (10) separate cultivation rooms, and will employ separate heating and cooling systems for each room, shade control and light deprivation systems, state-of-the-art automation, irrigation and fertigation systems, all to enhance One Plant’s continued production of the highest quality cannabis flower in the State of Florida.
“I am very excited about having Advanced Flower Capital as a capital partner as we scale up our operations as a premium flower company in Florida,” said Brady Cobb, CEO. “The entire One Plant Florida team is committed to our mission and purpose of cultivating and delivering world-class flower and flower-derived products to Florida’s patients, and this construction loan will allow us to continue to execute on our plans to build and develop a state-of-the-art indoor facility to facilitate expansion and the acquisition of additional market share in the budding Florida marketplace.”
Obtaining the construction loan satisfies one of the conditions under the previously announced business combination agreement between CannCure, Goldstream Minerals Inc. (“Goldstream“), and a wholly-owned subsidiary of Goldstream, that will result in the reverse takeover of Goldstream by the shareholders of CannCure (the “RTO“). If the RTO is completed, then the issuer resulting from the RTO (the “Resulting Issuer“) will carry on the business of CannCure as a U.S. multi-state cannabis company initially operating in the State of Florida via One Plant. The completion of the RTO is subject to a number of other conditions, including the receipt of all requisite shareholder and regulatory approvals including, without limitation, the de-listing of Goldstream from the NEX board of the TSX Venture Exchange, the listing of the Resulting Issuer’s common shares for trading on the Canadian Securities Exchange, and all necessary approvals from the Florida Office of Medical Marijuana Use. There can be no assurance that the RTO will be completed as proposed or at all.
Construction Loan Terms:
The construction loan consists of a five-year USD$15,000,000 loan, with year one interest only on the amount outstanding, future advances not to exceed USD$20,000,000 USD in total, and an interest rate of 13.5%. The construction loan is secured by a mortgage and other commercially-common security interests and instruments.
Operational Update:
One Plant Florida continues to establish itself as a producer of the highest-quality cannabis products in Florida, and when its current operations are compared against more established Medical Marijuana Treatment Centers in Florida, the power of premium flower can be seen. According to the weekly report dated February 14, 2020 from Florida’s Office of Medical Marijuana Use:
- One Plant Florida’s cannabis flower products accounted for 1.26% of all cannabis flower sold in the state in the last reporting period, during which time the company accounted for only .434% of the state’s dispensaries;
- One Plant Florida sold 77.3% as much flower as Curaleaf, with only 3.57% as many dispensaries as Curaleaf;
- One Plant Florida sold 12.35% as much flower as Liberty Health Sciences, with only 4.34% as many dispensaries as Liberty Health Sciences;
- One Plant Florida sold 73.20% as much flower as Green Thumb Industries, with only 16% as many dispensaries as Green Thumb Industries;
- One Plant Florida sold 134.7% as much flower as Harvest Health and Recreation, with only 16% as many dispensaries as Harvest Health and Recreation;
- One Plant Florida sold 14.5% as much flower as Surterra, with only 2.63% as many dispensaries as Surterra; and
- One Plant Florida sold 12.7% as much flower as Altmed, with only 5.88% as many dispensaries as Altmed.
One Plant Florida has accomplished this growth and market penetration through the continued consistent production of its premium cannabis flower strains, including the popular Indica-dominant hybrid M.A.C. 1, the highly potent Indica-dominant hybrid Chem D, the citrusy Sativa-dominant hybrid Sherb D #1, the subtle and relaxing Indica-dominant hybrid Vanilla Berry Pie, the earthy and fruity Indica-dominant hybrid Darth Revan, and the euphoric Indica-dominant hybrid Mandarin Triangle Kush, among numerous others.
One Plant’s planned new product offerings include solventless bubble hash and other solventless cannabis concentrates, One Plant-branded tinctures and salve creams, and GPen GioPods. All planned product offerings remain subject to regulatory approval. One Plant Florida is also rolling out its dispensary footprint (and delivery model with each store acting as a delivery hub) and expects to open nine (9) planned dispensary locations in 2020 throughout the state, including its Jacksonville Beach location (expected to open on or before March 1, 2020), its St. Petersburg location (expected to open on or before March 20, 2020), and its Bonita Springs location (expected to open on or before April 14, 2020). Other planned dispensary locations that are currently either in permitting or under construction in Florida include the Fort Lauderdale, North Miami, Oakland Park, Orlando, Ft. Myers, Port St. Lucie, Tallahassee, Avon Park, and Pensacola areas.
One Plant California Update:
Finally, SOL Global announces that the previously announced binding letter of intent between Three Habitat Consulting HoldCo, Inc., a Delaware corporation d/b/a One Plant California and CannCure has been terminated at the mutual wishes of the parties following a re-evaluation of the transaction in light of current market conditions. The parties have since entered into a long-term license agreement whereby One Plant Florida will retain exclusive use of all One Plant intellectual property within the State of Florida. The parties remain interested in future transactions and will evaluate them as market conditions continue to improve.
About SOL Global Investments Corp.:
SOL Global is an international investment company with a focus on, but not limited to, cannabis and cannabis related companies 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 program with the University of Miami. It is this comprehensive approach that is positioning SOL Global as a future frontrunner in the United States’ medical cannabis industry.
Cautionary Statements
This press release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy.
By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release, including construction delays, a failure to obtain all necessary regulatory approvals to commence greenhouse operations, a failure or delay in satisfying all the conditions to the RTO including obtaining all necessary shareholder and regulatory approvals, and a failure to obtain the necessary regulatory approvals for our proposed new product offerings.
Other risk factors include, but are not limited to: the Company’s ability to comply with all applicable governmental regulations in a highly regulated business; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal laws; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; inconsistent public opinion and perception regarding the medical-use and adult-use marijuana industry; and regulatory or political change. Additional risk factors can also be found in the Company’s current MD&A which has been filed on SEDAR and can be accessed at www.sedar.com.
Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
TOR_LAW\ 10219149\12
View source version on businesswire.com: https://www.businesswire.com/news/home/20200221005265/en/
Contacts
SOL Global Investments Corp.
Brady Cobb, CEO
Phone: (212) 729-9208
Email: info@solglobal.com
For media inquiries, please contact:
Davis Richardson
AMW PR
P: 212.542.3146
E: Davis@amwpr.com
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
