DEPLOY ANNOUNCES CORPORATE UPDATE Excerpts of todays announcement are as follows:
DEP provides a series of corporate developments at Nevada Medical Group LLC (NMG) related to the letter of intent between the companies announced on May 17, 2017
- the transaction has not closed, and there can be no assurance that the transaction will close as proposed, or at all.
New applications for NMG in Ohio and Arkansas
OHIO:
- NMG has completed agreements, of which Deploy was party to, with two companies for the application of new medical licences.
- If NMG and its partners are successful in obtaining these licences, it could provide a first-mover advantage to expand its leading brand, Body & Mind (BaM), outside of Nevada without having to purchase new licences.
- NMG believes the Super 12 Ohio licences could be among the most valuable in the United States as the population base exceeds 11 million people. The Ohio application was submitted on June 28, 2017.
- The entity submitting the application is NMG Ohio LLC, and is owned by the group processing the application, including NMG. If granted, NMG will retain a 30-per-cent interest in the licence granted by Ohio, will be the operator and will maintain a right of first refusal with respect to the remaining 70-per-cent interest, which shall be held by the applicant group as a whole.
Arkansas:
- application opportunity where others are financing the risk capital in exchange for providing the necessary expertise in processing these applications, including credo, to expand BaM beyond Nevada and to ultimately create value for its shareholders.
Out-of-state licensing
- NMG has recently signed a confidential LOI with a dispensary group to licence the BaM brand in Montana, which will mark the first out-of-state licensing deal for BaM.
- This is a testament to the brand strength of BaM but also shows the value of launching a national brand from Nevada, the destination to 45 million tourists annually.
- Licensing deals are of great value to NMG as there is no capital expenditure associated with building out cultivation and production facilities. NMG is pursuing other licensing opportunities but can provide no guarantee they will materialize into deals.
Financing and closing
- Deploy is forecasting a mid-July closing for its previously announced offering of subscription receipts of Deploy at an issue price of 22 cents per subscription receipt, for one common share in the capital of Deploy and one common share purchase warrant exercisable at a price of 30 cents for a period of 24 months from the date of issuance, subject to acceleration provisions.
- The contemplated mid-July closing date for either the concurrent financing or a tranche thereof is anticipated to coincide with the completion of the definitive agreement between Deploy and NMG, the audit of NMG, and the listing statement preparation.