TORONTO, June 27, 2019 /PRNewswire/ - Cannabis Growth Opportunity Corporation ("CGOC", or the "Company") (CSE: CGOC), a cannabis-focused investment corporation with both public and private cannabis holdings is pleased to announce a private placement (the "Offering"), with Next Green Wave Holdings Inc. ("Next Green Wave", or "NGW"), of 726,744 CGOC Common Shares at a price of $1.72 per share, for aggregate subscription proceeds of $1.5 million. Concurrent with the Offering, CGOC will make an investment into Next Green Wave by way of subscription for 11,000,000 NGW Common Shares at a price of $0.25 per share, for an investment in the amount of $2.75 million. This investment increases CGOC's holdings in NGW to 12,112,500 Common Shares.
CGOC and NGW have entered into voting and resale agreements voluntarily extending resale restrictions to February 1, 2020, and making voting commitments in respect of their shareholdings.
Jamie Blundell, President and Chief Operating Officer of CGOC commented, "We have been strategic investors in Next Green Wave since June 2018 when they were still a private company and have continued to support their efforts through their go-public transaction in October 2018. They anticipate near-term revenue generation and at the low-end of their annual revenue expectations we believe their current valuation is extremely low especially compared to similar companies. We remain confident in their strategy as we see tremendous growth ahead and believe this is a perfect entry point for investors."
Leigh Hughes, CEO and Executive Chairman of NGW commented, "CGOC has been a strong supporter of NGW as we have transitioned from a private company to public issuer and continue to support our growth initiatives. We are excited to welcome CGOC as a significant shareholder and look forward to a successful partnership with them."
About Next Green Wave
Next Green Wave is a vertically integrated seed-to-consumer premium medicinal and recreational cannabis company operating in California. The Company's first state-of-the-art indoor facility (35,000 ft.2) is now entering production with future plans to expand the 15 acres of cannabis zoned land it is situated on. NGW has acquired a seed library of over 120 strains which include several award-winning genetics and cultivars. Our recent acquisition of SDC Ventures LLC will complement NGW's branded products and accelerate the company to revenue through SDC' existing partnerships and labels. The investment in Organic Medical Growth Inc. will provide NGW access to distribution through the licensing of our brands through Colombia.
CGOC is an investment corporation that offers unique global exposure to the emerging global cannabis sector. CGOC's main objective is to provide shareholders long-term total return through its actively managed portfolio of securities, both public and private, operating in, or that derive a portion of their revenue or earnings from products or services related to the cannabis industry.
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SOURCE Cannabis Growth Opportunity Corporation