Adam Szweras and David Posner are on their teamAdam Szweras (Board of Director at ACB) and David Posner (CEO of EAT) are part of this team
Platinex to acquire 51% of Glas Huis for $2M (U.S.)
2018-04-04 08:26 ET - News Release
Mr. David Posner reports
PLATINEX TO EXPAND OREGON FOOTPRINT WITH ACQUISITION OF DOPE CUP AWARD WINNING CRAFT CANNABIS COMPANY
Platinex Inc. has signed a letter of intent (LOI) to acquire a 51-per-cent interest in Glas Huis Inc., an award-winning craft cannabis cultivator and extracts manufacturer in the state of Oregon.
Transaction Overview
Platinex has entered into an LOI to acquire a 51% interest in Glas Huis, an Oregon-based cannabis company specializing in the production of premium quality craft products including top shelf flower and solventless concentrates. Led by a team of talented growers and extractors, Glas Huis has a proven track-record in the craft segment having won multiple coveted industry awards including 1st place for Best Rosin at the 2017 Oregon Dope Cup and 1st place for Highest THC at the 2016 Cannabis Classic.
Since 2014, Glas Huis has operated as a medically-licensed producer/processor and is poised to enter Oregon's $558 million1 recreational market having received conditional approval for a Tier 1 production facility located on a 15-acre property in Deschutes County, Oregon. Glas Huis currently has an application before the Oregon Liquor Control Commission ("OLCC") for a recreational license which is pending a final site inspection.
Capital provided by Platinex will be deployed towards completing a state-of-the-art Dutch-style hybrid greenhouse featuring advanced hydroponic technology and will enable Glas Huis to penetrate the Oregon recreational market with their award-winning line of premium quality craft cannabis products.
Transaction Details
Platinex will acquire a 51% interest in Glas Huis for total consideration of US$2 million, of which US$1.5 million will be invested into Glas Huis in the form of a senior secured promissory note carrying an interest rate of 10% with a 30-month term and US$500,000 will be in the form of Platinex common shares issued to current Glas Huis shareholders priced at the 10-day VWAP prior to closing. In addition, Platinex will have an option to increase its ownership interest in Glas Huis to up to 75% by funding the build-out of a secondary cultivation facility.
The Transaction is subject to completing a due diligence review to the satisfaction of the Company and other conditions, which include but are not limited to obtaining OLCC approval and entering into agreements to consummate the transfer of interests. There is no assurance that the Transaction will be completed on the terms satisfactory to the Company or at all.
Management Commentary
Bruce Reilly, Director and Chairman of the Cannabis Committee, commented: "Pursuing acquisitions to increase our footprint in Oregon is the direct consequence of our aggressive growth strategy as our platform allows us to capitalize on attractive opportunities in what remains a very fragmented and undercapitalized U.S. cannabis space. Evidenced by multiple industry awards, the team at Glas Huis has established itself as a leader in Oregon's craft cannabis marketplace which continues to be an area where we see a significant opportunity for sustained growth."