Captor Capital Enters Into Letter of Intent to Acquire Majority Ownership in Michigan Cannabis Opportunity
- 20 retail cannabis licenses
- Two processing licenses
- Eight cultivation licenses
TORONTO, April 09, 2019 (GLOBE NEWSWIRE) -- Captor Capital Corp. (CSE: CPTR; USOTC: CPTRF; FRANKFURT: NMV; STUTTGART: NMVA), ("Captor" or the "Company"), a vertically integrated investment company focused on cannabis, is pleased to announce that it has entered into a Letter of Intent ("LOI") to form a Joint Venture Company (“JVCo” or “joint venture”) with Green Buddha Group LLC (“Green Buddha”), a company with significant cannabis assets in Michigan, including retail operations currently generating sales, and cultivation and manufacturing facilities presently under development.
In accordance with the terms of the LOI, Green Buddha will transfer to JVCo Michigan licenses to operate 20 retail medical cannabis retailers, two licenses to operate a cannabis manufacturing, processing, and extraction facility, and eight licenses to operate a 325,000 sq. ft. cannabis cultivation facility (the “Michigan Licenses”). Captor has agreed to provide JVCo a convertible loan to fund the exploitation of the Michigan Licenses and the build-out and operation of JVCo’s retail processing and cultivation facilities. The loan is convertible into 50.1 per cent of the issued and outstanding shares of JVCo. Upon conversion of the loan, Green Buddha would own 49.9 per cent of JVCo.
Our new joint venture with Green Buddha Group will allow us to strengthen our primary strategic focus of acquiring revenue generating cannabis-based companies with great potential for profit and with top quality operations and an experienced management team
said Captor Capital CEO, John Zorbas.
This investment will also give Captor entry into the potentially lucrative cannabis market in the state of Michigan
Michigan is the third largest cannabis market in the United States and is the 10th state to legalize recreational marijuana for adult-use. It is estimated that recreational sales of cannabis in Michigan over the next four years could total USD$1.5 billion. Green Buddha is already well positioned in Michigan and will be able to leverage the influx of capital in implementing a strategic growth plan.
Captor Capital Corp. is a Canadian firm focused on the cannabis sector listed on the Canadian Securities Exchange, the OTC, and the Frankfurt and Stuttgart stock exchanges. A vertically integrated cannabis company, Captor provides recreational and medical marijuana-based products to consumers via its leading brands and dispensary locations. Captor owns and operates advanced growing facilities, which produce consistent high-quality, contaminant-free marijuana for its customers, as well as other high demand cannabis-based goods for consumption. The Company follows a strategy of acquiring cash flowing established companies and organizations with growth potential that require capital to scale. Captor currently has a number of revenue generating cannabis investments including the CHAI Cannabis Co. dispensaries in Santa Cruz and Monterey. The Company also owns Mellow Extracts, a highly regarded producer of cannabis extracts based in Costa Mesa, CA.
Captor Capital Corp.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains or refers to forward-looking information and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to availability of investment opportunities, economic circumstances, market fluctuations and uncertainties, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, and the other risks involved in the investment industry and junior capital markets. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.