National Access Cannabis Announces $7 Million Secured Loan and $1.85 Million Convertible Debenture Investment into The Green Company Ltd.
With two locations under construction and 22 retail applications submitted in Alberta, The Green Company Ltd. is set to establish itself in Alberta's retail cannabis industry.
OTTAWA, May 28, 2018 /CNW/ - National Access Cannabis Corp. ("NAC" or the "Company") (TSXV: META), Canada's best practices leader in delivering secure, safe, and responsible access to legal cannabis today announced that it has provided up to a $7 million secured loan to The Green Company Ltd. ("NewLeaf") and has subscribed for a $1.85 million5.45% secured convertible debenture (the "Convertible Debenture") of NewLeaf. The principal amount of the Convertible Debenture may be converted into common shares of NewLeaf at any time at NAC's option until May 25, 2020 subject to receiving all applicable regulatory approvals. Should NAC elect to convert the Convertible Debenture, NAC would hold 9.9% of NewLeaf's outstanding common shares. The Loan has been extended to NewLeaf for the capital expenditure required to build out recreational cannabis retail stores in the province of Alberta and the proceeds of the Loan will be lent over time if cannabis retail licences are granted to NewLeaf. The Loan bears interest at 6.45% per annum (the "Loan") and is due on or before May 25, 2020.
Currently, two proposed NewLeaf retail cannabis locations are under construction and NewLeaf has submitted 22 cannabis retail license applications for locations in Alberta.
We are excited to work with the team at NewLeaf to support the ongoing development of their impressive portfolio of real estate assets across Alberta through the Convertible Debenture, NewLeaf has proactively secured high quality potential store locations while simultaneously developing a well-known brand name in the region. The core values of our companies are strongly aligned in educating interested Canadians about legal cannabis products while delivering secure, safe, and responsible access.
said Mark Goliger, CEO of NAC.
Mr. Goliger added:
Notwithstanding this investment, NAC and its affiliates continue to apply for retail cannabis licenses in Alberta and across Western Canada to operate retail cannabis stores under the Meta Cannabis Supply Co. brand.
NewLeaf's CEO Jon Conquergood stated,
NAC's reputation for connecting those seeking the many benefits of responsible cannabis consumption aligns well with our desire to provide education-driven, needs-based sales to the communities we serve. Their financial investment further secures our ability to successfully deliver on the promises we've made to-date.
About National Access Cannabis
National Access Cannabis is Canada's best practices leader in delivering secure, safe, and responsible access to legal cannabis. Through its Canada-wide network of care centres and retail locations, NAC enables patients and the public to gain knowledge and access to Canada's disparate network of authorized Licensed Producers of Cannabis. NAC improves the quality of life of its local clients and provides services designed to inform, educate and supply expert advice.
This news release contains forward looking statements and forward looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward looking statements or information. Forward-looking statements and information in this news release includes, but is not limited to, statements concerning the completion or operation of any cannabis retail locations, the ability to obtain, maintain or transfer licenses to retail cannabis products and future commitments of financing from NAC to NewLeaf. Although the Company believes that the expectations and assumptions on which the forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company cannot give any assurance that they will prove to be correct. Since forward looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results and developments may differ materially from those that are currently contemplated by these statements depending on, among other things, risks relating to the ability to obtain, maintain and/or transfer licenses to retail cannabis products; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical and potential cannabis industry in Canadagenerally. The Company cautions that the foregoing list of risks and uncertainties is not exhaustive.
The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE National Access Cannabis Corp.