Grapefruit USA, Inc. GPFT executeed a binding letter of intentconcluded on June 30, 2022, speak vsCompany and Diagnostic Lab Corporation of Englewood Cliffs, New Jersey, under which the company and DLC will jointly recapitalize Grapefruit and raise $12.5 million in debt financing (including $5.5 million already committed by a qualified construction lender) to:
1. Complete construction of the vs“Mothership” of the company growing, manufacturing and distribution install in the Coachillin Industrial Culture and Auxiliary Canna-Business Parklocated 14 miles north of downtown Palm Springs, California.
2. Acquire all DLC assets for an amount to be determined in cash and common stock of Grapefruit.
3. Finance the vsCompany request for an FDA 510K approval for his patent hourglass Z-POD THC/CBD/cannabinoid time-release infused delivery cream.
4. Finance the vscompany clinical study to measure the effects of Hourglass Deliverance Cream on pain and other symptoms in patients who suffer from the debilitating effects of osteoarthritis.
The parties plan to repay the new debt of $12.5 million through a public capital increase and a simultaneous listing on a US or Canadian stock exchange, as permitted by applicable securities regulations.
Bradley J. YouristCEO and Co-Founder of Grapefruit, said, “The execution of this Letter of Intent between DLC and GPFT is the next step in Grapefruit’s evolution from a ‘me too’ cannabis company to a biotech company. based on medical science and focused on cannabis which develop and obtain regulatory approval for an ever-expanding line of proprietary cannabis products based on the company’s patented Hourglass technology. »
Yourist continued: “ The construction of Coachillin’s “Mothership” facility at Coachillin Park will secure our balance sheet and provide a reliable source of reasonably priced, pharmaceutical-grade cannabis flower for the raw material of Hourglass THC products and for distribution in the United States and the United States. Canada, as appropriate in any given market situation. 510K approval for Hourglass technology will facilitate its rapid market acceptance across the United States as an approved medical device. Finally, our laboratory acquisition program will ensure rapid revenue growth and expand the company’s presence in the cannabis industry. “
The parties expect to finalize and execute the definitive agreement before the end of August 2022 and close the transaction shortly thereafter.
Photo by CRYSTALWEED cannabis on Unsplash
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