DENVER, Aug. 12, 2020 /PRNewswire/ -- Redwood Green Corp. (the "Company") (OTCQB: RDGC) today announced changes to its Board of Directors, reflecting an anticipated change in corporate strategy. The Company intends to withdraw from the cannabis industry and to examine opportunities that may be available to it in responsible gold exploration in newly accessible areas of Colombia, subject to securing necessary funding.
At their meeting on August 11, 2020, the Company's Board of Directors unanimously adopted a resolution providing for the Company to withdraw from the cannabis industry. Reasons the Board considered in reaching its decision included:
- difficulties the Company's earlier acquisition strategy has encountered at the Company's recent low stock prices
- prolonged uncertainty about the timing of federal legalization of cannabis
- overcrowding of the cannabis industry by large numbers of competitors.
Under the resolution, the Company will seek a buyer, at an appropriate price, for its Good Meds division. The Directors emphasized that the Good Meds division will continue to operate and contribute to the Company's earnings until a sale under suitable terms is completed.
Two Directors, Mr. John Scharffenberger and Mr. Steven Hilton, have resigned from the Board. Each indicated a continuing interest in participating in consumer goods industries. Upon accepting the resignations, the continuing Directors thanked the gentlemen for their valuable contributions to the Company.
The Board of Directors appointed Mr. Carlos Andrés Hernández and Mr. Gary Artmont to be Directors of the Company. In welcoming the two incoming Directors, the Board noted their country and/or industry-specific experience applicable to the Company's contemplated direction. The Board also noted that the incoming Directors committed to presenting specific Colombian exploration opportunities for the Board's review.
At its meeting, the Board also considered:
- the extensive business and professional associations the Company has developed in Colombia
- Colombia's long and productive history in the gold-mining industry
- the recent re-opening of historic gold-producing districts in Colombia that had been effectively closed by civil strife for 50 years
- the advances in exploration technology that occurred during that 50-year hiatus and that can now be applied to Colombia's known gold-producing districts
- the commitment of the Colombian government to environmentally prudent exploration practices.
About Carlos Andrés Hernández
Carlos Andrés Hernández is a mining industry professional who worked for eight years for Drummond Ltd., the Colombian subsidiary of Alabama-based Drummond Company, Inc. In that capacity Mr. Hernández focused primarily on acquisitions and contract negotiations for Drummond's El Descanso open-pit coal mine, a Colombian facility that produces low-sulphur, low-ash bituminous coal for export. After leaving Drummond, Mr. Hernández served as a political adviser to Jose Gabriel Amar Sepulveda, a member of Colombia's Congress.
Mr. Hernández holds a degree in International Business from the Universidad del Norte in Barranquilla and speaks Spanish, English and French.
About Gary Artmont
With an exploration career spanning five decades and 21 countries, Mr. Artmont is experienced in all aspects of mineral exploration, from grass-root assessment to project pre-feasibility studies. Over the last 46 years, Mr. Artmont worked as a geologist and project manager for prominent mining-related firms, including Geostar Consulting, Rio Tinto, PT Pelsart Indonesia, PT Freeport Indonesia and Ivanhoe Mining China. He is a Fellow of the Australasian Institute of Mining and Metallurgy and is qualified to issue National Instrument 43-101 Competent Person reports and Joint Ore Reserves Committee Code (JORC) Competent Person reports required by public stock exchanges.
Mr. Artmont holds a degree in Geological Sciences from Waterloo University, Ontario, Canada, and speaks English and Spanish.
For additional information, please contact the Company's Investor Relations department by email at [email protected] or by telephone at +1 303 222 8092.
The Company's common stock trades on the OTCQB® Venture Market with the symbol RDGC.
This press release is not an offer of securities, or a solicitation for purchase, subscription or sale of securities in the United States of America or in any other jurisdiction in which it would be unlawful to do so.
+1 303 222 8092
This message may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, that involve known and unknown risks, uncertainties and other factors, including risk factors identified in the Company's SEC filings, and which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Risks and uncertainties include, without limitation, changes in the regulatory environment affecting the sale and use of cannabis or hemp products and of other, potential lines of businesses that the Company will consider entering at a given time, demand for the Company's products, internal funding and the financial condition of the Company, product roll-out, competition, our dependence upon our commercial partners, variations in the global commodities markets and other commercial matters involving the Company, its products and the markets in which the Company operates or seeks to enter, as well as general economic conditions. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Marijuana, as defined in the U.S. Controlled Substances Act, remains a Schedule I drug under the respective act, making it illegal under federal law in the U.S. to, among other things, cultivate, distribute or possess cannabis. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the U.S. may form the basis for prosecution under applicable U.S. federal money laundering legislation. Please carefully review the Company's SEC filings with respect to related risk factors.
SOURCE Redwood Green Corp.