TORONTO, July 15, 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 report that Bhang Corporation ("Bhang"), one of the private portfolio holdings commenced trading on the Canadian Securities Exchange ("CSE"), under the symbol "BHNG", on July 11, 2019, at closing price of $0.52 on its first day of trading.
Bhang is a global cannabis brand delivering a large variety of safe, consistent products to consumers. Bhang's mission is to be the most-recognized and trusted cannabis brand on the planet. Bhang has a comprehensive vertical plan to widely distribute three tiers of products (cannabis, hemp-derived CBD, and terpenes) across global cannabis and mass markets. While the focus remains on bringing delicious, safe, and consistent products to consumers, Bhang's extensive gourmet food background and experience is also bringing high-quality products to large food chains like Whole Foods. Bhang has partnered with other respected innovators such as Origin House (formerly CannaRoyalty), Indiva and Trulieve.
Jamie Blundell, President and Chief Operating Officer of CGOC commented, "Our original investment in Bhang was based on their experienced and well managed team, their knowledge of brand creation, and their commitment to delivering a consistent, high-quality product. We are very pleased with how the company has managed its growth plans including securing strategic partnerships to assist with their global drive for brand recognition. We believe they have acted prudently throughout the RTO process and look forward to seeing where they go from here. It is also encouraging to the see the stock trading up on its second day of trading, closing at $0.76 on July 12, 2019.
"Bhang is the sixteenth (16) private portfolio holding to complete a successful go public transaction and will provide a positive impact to the CGOC valuation this month."
Scott Van Rixel, Chairman & CEO of Bhang commented, "We have been very pleased with our partnership with CGOC since their initial investment and are grateful for their support as shareholders. Our enhanced executive team is primed to achieve our stated goals and objectives, which we trust will provide additional upside for our shareholders as we continue on our path of becoming the premier global cannabis brand
- One of the first and most recognized, diversified and established brands in cannabis having won over 30 awards including one of the most awarded cannabis chocolate bars in the world.
- The "House of Brands" vertical expansion program (includes a full suite of THC, hemp-derived CBD, and terpene products, and a CBD brokerage), are driven by Bhang's product quality, leadership, innovation and longevity.
- Expansive product portfolio combined with well-established distribution and licensing network position Bhang to capture significant market share across multiple target demographics, including the cannabis and hemp-derived CBD market, the performance-athletics market, and the nicotine-cessation market. Will be launching eight more brands with new products over the coming months that will address several larger and underserved end-markets as well.
- Soon-to-be introduced terpene products will enable Bhang to gain valuable, retail shelf space and leverage the sales pipeline for other products when regulations permit.
- Top-tier manufacturing/distribution partnerships with Trulieve in Florida, Origin House/Cresco in California, and a 50/50 joint-venture with Indiva for Canadian and select worldwide distribution. In total, there are currently over 1,000 stores selling Bhang's brands and is expected to exceed 2,000 by the end of the year.
- Unique low CAPEX/OPEX business model provides multiple revenue stream opportunities including license revenues, wholesale revenues, direct to consumer revenues through bhangcbd.com, and revenues from the CBD brokerage business.
- CBD brokerage business allows Bhang to leverage its long-term cannabis industry relationships in order to satisfy some of the tremendous demand for CBD that currently exists and, in the process, reduces its input costs via the large volume purchase discounts received.
- Opportunistically evaluating M&A growth opportunities and joint ventures with top manufacturers and leaders in their respective consumer segments.
- Experienced management team that can carry out the Bhang's strategy. The team possesses a combination of experience in the CPG/alcohol/retail sector as well as deep cannabis expertise, making the senior team uniquely positioned to execute on this growing opportunity.
CGOC Return on Investment
GOC invested $500,000 USD ($656,150 CAD) in Bhang in April of 2018, receiving 2,570 common shares. As part of the go public transaction, the common shares were converted into 1,702,412 subordinate voting shares of Bhang. This represents a gain of $239,104 or 37% on CGOC's investment in Bhang.
CGOC also holds two convertible 8% notes (the "Notes") with a face value of $300,000 CAD each, convertible into Bhang shares at price of $0.50 at CGOC's option. Bhang has the option to trigger conversion of the Notes if the volume weighted average share price is equal to or greater than $1.00 over a period of ten (10) consecutive trading days.
Bhang is committed to delivering exceptional sensory experiences to consumers at every point in their cannabis journey through its award-winning portfolio of brands. Bhang is a trusted global cannabis house of brands with an extensive portfolio of over 100 cannabis, hemp-derived CBD and terpene products, including chocolates, pre-rolls, vapes, gums, beverages, gummies and mouth sprays, among others. Since 2010, Bhang has mastered the art of harnessing mutually-beneficial partnerships to bring safe, consistent and delicious products to the world.
For more information please visit bhangnation.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE Cannabis Growth Opportunity Corporation