Wildflower Completes Acquisition of Retail and Cultivation Licenses in LA
VANCOUVER, British Columbia, April 23, 2018: Wildflower Marijuana Inc. (CSE: SUN) (FWB: RSP) (“Wildflower” or the "Company") has completed the acquisition of multiple California marijuana licenses in the City of Los Angeles including the ownership of a property with a Pre-ICO operating dispensary and cultivation facility. The licenses include medicinal and adult use storefront and delivery, medicinal and adult use cultivation specialty indoor, medicinal and adult use manufacturer level 1 and medical and adult use distributor licenses for both the City of Los Angeles and the State of California.
Wildflower CEO, William MacLean stated, “420 will forever have a new meaning for Wildflower with the completion of this acquisition. We look forward to building upon the existing business as well as expansion opportunities to monetize all the licenses acquired.”
The agreement was amended to include consideration of US$9.5M through, the payment of cash of US$5.2M, the issuance of 400,000 common shares and the entering into of 2 promissory notes totaling $US4M. In addition, the Company paid a finder’s fee in the amount of $950,000.
In addition, to closing the acquisition, the Company has closed the second tranche of the private placement it announced on March 19, 2018 and amended on April 18, 2018 for $344,018 in units priced at $1.30 per unit (“Unit”). Each Unit consists of one common share of the Issuer and one half of one share purchase warrant (“Warrant”). Each whole Warrant will entitle the holder to acquire one common share of the Company at a price of $2.50 for a period of 12 months following the closing date. Once resale restrictions on the Shares having expired and upon Company’s shares trading at or above a weighted average trading price of $3.50 for 20 consecutive trading days, Wildflower may give notice that the Warrants will expire 30 days from the date of providing such notice (in writing to Warrant holders and via a news release). The proceeds will be used for working capital. All securities issued pursuant to the placement will be subject to a hold period of four months and one day from the date of closing. A commission of $5,200 and 4,000 broker warrants was paid. The broker warrants have the same terms as the warrants forming a part of the units.
About Wildflower Marijuana Inc.
Wildflower is a cannabis company focused on developing and designing branded cannabis products. Wildflower sells its CBD+ products online and to retailers throughout the US and also produces and markets its THC products in regulated cannabis jurisdictions.
On Behalf of the Board of Directors
Director and CEO
The Canadian Securities Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.