Form 7 - Monthly Progress Report - April 2017I am not impressed.
Released on CSE -
Progress Report Apr 2017 - Link Report on Business
1. Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact. In the press release dated April 4, 2017, the Company announced an overview of the milestones accomplished during its second quarter ended January 31, 2017, and Q2 financial results.
In the press release dated April 5, 2017, the Company announced that its medical dispensary in Illinois, The Clinic Effingham (“TCE”), has experienced a strong month-to-month growth in sales and stable gross margins, which are attributed to an expanding patient count and a strong patient and physician outreach program. In the same press release, the Company announced selling the Lawrenceville property back to its original vendors. The Company’s board has also approved the issuance of 5,300,000 stock options to directors and consultants. Each Stock Option is exercisable into Common Shares at a price of $0.15 per Common Share for a period of five years from the date of issuance, subject to certain vesting provisions with accordance with the Company’s stock option plan.
In the press release dated April 6, 2017, the Company announced an update pertaining to the business developments of Aura Health Corp. ("AHC"), providing information about AHC’s business strategy and expansion plan, and AHC’s project in Nevada and Arizona. Furthermore, AHC has appointed MNP LLP as its auditor, which is nearing completion of it’s the financial statement audit for the year ended December 31, 2016. AHC has also appointe d Branson Corporate Services Inc. to provide accounting and CFO support.
In the press release dated April 12, 2017, the Company announced that it has received consent from the State of Nevada Department of Health and Human Services (“Department”) to trans fer the provisional producer and processor licenses (“Licenses”) in Henderson, Nevada to the Company. The acquisition of the Licenses by the Company will be completed once the Company has received the final approval for the business license t ransfer from t he City of Henderson . In the same press release, the Company noted its intention to move the location of the medical marijuana establishment to another location in the City of Henderson and has applied to the City to approve such relocation. It is also int ended that a portion of the building will be acquired by Lakeside Minerals Inc., with a view of constructing a cultivation facility, as announced in a joint press release dated February 28, 2017.
In the press release dated April 17, 2017 , the Company anno unced an extension of the US$800,000 secured note of its Pueblo, Colorado, property with Veterans Capital Fund, LLC. The Company also entered into a term sheet with the lender to provide a loan against the property it acquired in La Pine, Oregon ("Oregon P roperty") (please see the press release dated March 27, 2017). The press release outlines the key terms of the Colorado loan extension and the Oregon loan.
In the press release dated April 18, 2017, the Company announced that its licensed tenant in Colora do, Palo Verde LLC, has fulfilled a large order of ½ gram FLI - branded vape pen cartridges with Natures Herbs and Wellness Center in Colorado.
2. Provide a general overview and discussion of the activities of management. The issuer is primarily focused on de veloping, acquiring, and designing products and brands in the marijuana - infused edible products and producing oil extracts for medical and adult recreational use. The Company works exclusively in U.S. states where such activity is permitted and regulated b y state law, through entities which hold a valid US s tate license to produce marijuana - infused edible products and to distribute, and dispense marijuana product.
In this regard, among other duties, management has been undertaking the following:
• working w ith Palo Verde to develop and evaluate options that will further allow Palo Verde to increase its capacity
• working/collaborating with Lakeside Minerals Inc. to build medical and adult use cultivation facilities in Colorado and Nevada , in accordance with ap plicable state law
• working on rolling out its flagship line of products under the brand name, FLI
• develop ment of manufacturing processes
• developing marketing plans and product ideas
• pursuing branding and licensing opportunities
• recruitment of personnel .
The Issuer is actively pursuing expansion opportunities in various other US s tates and Europe . The expansion strategies the Company i ntends to pursue include direct acquisitions, joint - venture partnerships, royalty/licensing arrangements or direct license application in a legally compliant manner. The focus is on designing arrangements in such way that expansion efforts provide the quickest way to enter the market to introduce the Company's products and provide the highest rates of return.
14. Provide details of any securities issued and options or warrants granted. Exercise of warrants - 342,857 Common Shares for $21,142.85 (average 0.06167 CAD)