Origin House Converts MÜV Royalty Interest and Increases Equity Position in Prominent Cannabis Multi-State Operator, AltMed
OTTAWA, Feb. 28, 2019 /CNW/ - CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF), ("Origin House" or the "Company") a leading North American cannabis products and brands company, today announced that it has completed the previously announced conversion of the Company's 3.5% royalty interest on the sale of Alternative Medical Enterprises, LLC's ("AltMed") MÜV branded products ("MÜV") into AltMed's equity (the "Agreement"), increasing Origin House's aggregate equity position in AltMed to 5.1%.
Commenting on the Agreement, Marc Lustig, Chairman and CEO of Origin House said,
Converting our royalty stream into a combination of cash and more exposure to a multi-state operator of AltMed's calibre is another win for Origin House shareholders. With rapid expansion of their business in Florida and Arizona, we're confident that having an increased ownership level in these two states through AltMed will increase the already sizeable return on investment
- Origin House previously owned a 4.8% equity interest in AltMed and a 3.5% gross product royalty on the sale of certain MÜV products.
- Upon conversion of the royalty interest, Origin House now owns an aggregate of 5.1% of AltMed. As consideration for the Company's royalty interest, AltMed has issued a combination of cash and units of AltMed's equity to Origin House.
- AltMed is a licensed cannabis business operating in Florida and Arizona. AltMed exclusively manufactures and distributes award-winning MÜV cannabis products through AltMed's 100% owned subsidiary, NuTrae LLC, d/b/a MÜV, which owns MÜV.
- During 2019, AltMed plans to open 14 additional retail dispensaries in target Florida cities.
Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. The Company's foundation is in California, the world's largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries. Origin House's brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke. Origin House's shares trade on the Canadian Securities Exchange (CSE) under the symbol "OH" and on the OTCQX under the symbol "ORHOF". Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Origin House's periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements relating to the closing of the transaction and the future performance of the Company's investment in AltMed. Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects that are engaged in activities currently considered illegal under US federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. The Company disclaims any intention or obligation to update or revise such information, except as required by applicable law, and the Company does not assume any liability for disclosure relating to any other company mentioned herein.
SOURCE Origin House