Grown Rogue Reaches Binding Agreement for Michigan Cultivation, Processing, and Dispensary on West Side – Yahoo Finance

Agreement provides Grown Rogue option to acquire controlling interest of assets.

First harvest expected Q4-2019

MEDFORD, OR , July 2, 2019 /CNW/ – Grown Rogue International Inc. (CSE:GRIN | OTC:GRUSF) (“Grown Rogue” or the “Company”), a vertically-integrated, multi-state cannabis company with licenses and assets in Oregon , California , and now entering Michigan , announced today a binding agreement (“Agreement”) to expand further into Michigan through a new strategic acquisition and partnership with experienced cannabis operators in Muskegon.  The partnership is with Inferno Gardens, Inc (“Inferno Gardens”), whose assets include the local approval for one retail dispensary (referred to as provisional centers in Michigan ) and a 24,000 sq ft indoor manufacturing  facility that will include both cultivation and processing when fully constructed.  State licensing is in progress and expected to be completed in the coming months.  The facility is approximately 40% constructed and expected to be fully operational within 120 days.  Final acquisition and partnership is subject to Michigan regulatory approval and full licensing of Grown Rogue at the state level.  

View photosGrown Rogue cannabis announced acquisition and operations in Muskegon, Michigan (CNW Group/Grown Rogue International Inc.)More

The terms of the Agreement include the following provisions:

  • Grown Rogue obtains the option to acquire a 51% ownership of Inferno Gardens, subject to state regulatory approval, for a one-time payment of $250,000 due upon the signing of the definitive agreement with a deposit of $50,000 submitted in conjunction with the execution of the Agreement;
  • Grown Rogue will provide up to $2MM in financing as a loan for development and operational build-out of the cultivation, processing, and dispensary centers of which Grown Rogue will be paid back under an established schedule;
  • Grown Rogue will have the right to purchase the remaining 49% of Inferno Gardens for either stock or cash

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