Next Green Wave Enters into Definitive Agreements with Organic Medical Growth (OMG)
Next Green Wave Announces Exciting OMG Expansion Developments
Vancouver, British Columbia – March 15, 2019 – Next Green Wave Holdings Inc. (CSE:NGW) (OTCQB:NXGWF) (“Next Green Wave” or the “Company”), is pleased to announce the signing of definitive agreements in respect of its previously announced transaction to take a strategic investment in Organic Medical Growth OMG3 INC. (“OMG”), a Canadian based company focused on producing and commercializing CBD products derived from medicinal and industrial cannabis in Colombia.
Next Green Wave now has access to the Colombian cannabis market which has an estimated potential to supply medicinal cannabis to 6 million patients
. Through OMG’s current distribution channel of 7,300 pharmacies, Next Green Wave has the opportunity to license its collection of brands and products into the Colombian market.
Organic Medical Growth Company Update
OMG, with its experienced management team, continues to execute according to its strategic roadmap. Further developments that have taken place since the signing of the memorandum of understanding between the parties on February 14, 2019 include the following:
- OMG has signed a joint venture with Cannabolland Cluster S.A.S (“Cannabolland”), a vertical biotech cluster based in Piedemonte Llanero region, Meta (Colombia) that groups companies with cannabis licenses with the aim of structuring the companies, consolidating the licenses, providing technical knowledge and infrastructure. As per the joint venture agreement, OMG has now access to the planned production of cannabis on 5,000 hectares of land with possible extension of the cultivation licenses for all types of production to the geographical area of the cluster (up to 12,000 acres). The six companies within Cannabolland, that include 2,500 associated growers, have 3 psychoactive (THC) and 3 non-psychoactive (CBD) licenses, as well as 2 transformational (extraction) licenses. In collaboration with its strategic and distribution partner Ortix S.A.S,
- OMG is working on the launch of 9 cannabis-based topical products under the OMG brand. The first 2 products from the OMG portfolio in Colombia will be distributed across Ortix network of 7,300 stores within the next 60 days.
OMG is actively pursuing a go-public transaction and focusing on becoming a significant producer and supplier of medicinal cannabis products and services in Colombia alongside companies such as PharmaCielo
. OMG is positioning itself to become one of the lowest costs, high-margin businesses operating in Colombia while delivering premium quality cannabis products to their consumers.
To see how quickly OMG is growing their business opportunities in Colombia is exciting for Next Green Wave,
stated Leigh Hughes, CEO of Next Green Wave.
As OMG grow their distribution channels, it opens up the platform for our brands outside of California and gives us scope to do more in a low-cost, high-margin environment in Colombia.
Terms of the Definitive Agreements and Strategic Partnership
Under the terms of the Investment Agreement, Next Green Wave will participate as follows:
- Invest in 2,000,000 common shares of OMG at CAD$0.25 per share for a total amount of CAD$500,000 under a subscription agreement with OMG
- Receive an additional 4,300,600 common shares representing 10% of the share capital of OMG post it’s first round of financing, in exchange for NGW’s provision of collaborative and commercial strategic support services under a services agreement, as described further below
- Receive an option to purchase 2,395,000 shares of OMG CAD$0.50 per share, or such other number of shares equivalent to 5% of the share capital following its first round of financing
The Agreement is based on the expectation that OMG will complete its Initial Public Offering (IPO) in 2019 and is also subject to the approval of the Canadian Securities Exchange.
In consideration of the common shares issued in the capital of OMG, Next Green Wave will collaborate and provide commercial strategic support to OMG through a License and Service Agreement, including the following:
- Adopting of nursery, cultivation and manufacturing techniques that will enable OMG to produce high quality cannabinoid oil through large scale production and in compliance with GMP standards;
- Planning and design of necessary infrastructure for its outdoor and indoor facilities; and
- Licensing of Next Green Wave’s medicinal consumer product goods and brands across OMG’s entire distribution network subject to countrywide regulation approval.
Next Green Wave’s Executive Chairman and CEO, Leigh Hughes will also be appointed to the advisory board of OMG and is expected to be appointed as a full board member of OMG as part of its going public transaction.
On behalf of the Board,
CEO and Executive Chairman, Next Green Wave Holdings Inc.
Next Green Wave (NGW) is a vertically integrated seed-to-consumer premium medicinal and recreational cannabis company operating in California - the world’s largest cannabis market. NGW has acquired licenses for its nursery/breeding, cultivation, extraction, and distribution operations covering both medical and recreational cannabis production and services. Construction of the indoor facility (35,000 ft²) has been completed and is now moving into the production phase. NGW will be pushing the innovation envelope with its current assemblage of strong brands and partnerships as well as continue to forge new brands that can be distributed across the globe. NGW has a library of more than 120 genetic cannabis strains which include several cannabis cup award winning genetics. The company currently owns 15 acres of cannabis-zoned land in Coalinga, California and is positioned for future growth and development. To find out more visit us at www.nextgreenwave.com
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About Organic Medical Growth OMG3 Inc.
OMG is a Canadian investment holding company focused on the production and distribution of cannabidiol (CBD oil) for medicinal purposes, sourced from organic certified farms in Colombia, as well as the distribution of cannabis-based medicinal products in Colombia and other markets. Through its joint venture agreements in Colombia, OMG has access to cultivation and transformation licenses and has an established distribution network through a strategic partnership in Colombia. To find out more visit www.organicmedicalgrowth.com
Source: Next Green Wave