Origin House completes the previously-announced sale of 51% of its equity stake in Bodhi Research to Green Relief for proceeds of $1.74 million, representing a 1265% return on investment.
All financial figures in Canadian Dollars ($) unless otherwise noted.
OTTAWA, Jan. 21, 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 its wholly owned subsidiary, CRHC Holdings Corp. ("CRHC"), has completed the sale of 51% of its 10% equity stake (the "Share Purchase") in Bodhi Research & Development Inc. ("Bodhi Research") to Green Relief Inc. ("Green Relief"). Pursuant to the previously disclosed agreement, Green Relief has purchased from CRHC and other vendors, 51% of all outstanding common stock of Bodhi Research. As consideration for the Share Purchase, Green Relief has paid CRHC $1.74 million in Green Relief common shares.
"This transaction represents continued progress against our stated commitment to create shareholder value by monetizing high-quality assets, not directly used to support and expand the Company's distribution and brand network in its core market of California. We are equally pleased for Dr. Neilank Jha and his team, who will have an opportunity with Green Relief, to focus on executing the future vision of the company. The significant gain from this early investment along with similar transactions Origin House has executed over the past year, highlights our team's successful track record in identifying strategic segments within the cannabis industry and generating substantial returns for shareholders," said Marc Lustig, Chairman and CEO of Origin House.
Subject to the vendors' right to exercise an option within 9 months of closing to retain the remaining 49% interest in Bodhi Research, the remaining 49% of the Company's interest in Bodhi Research may also be sold to Green Relief, in which case CRHC's total gross proceeds from the sale of its total 10% interest in Bodhi Research will be approximately $3.74 million, representing an approximate return on its investment of approximately 1400%.
About Bodhi Research
Bodhi Research and Development, Inc. is an Ontario-based research company founded by Dr. Neilank K. Jha, a Torontobased neurosurgeon. Bodhi Research is conducting research trials for exploring the use of cannabis in the treatment of concussions and post-concussive syndromes. Bodhi's Research's research has been done in collaboration with some of the world's foremost experts in concussions and pain management.
About Dr. Neilank K. Jha MD, MSc, MBA
Dr. Jha holds his medical degree, neurosurgical training and spine fellowship from McMaster University and the University of Toronto. He holds MSc and MBA degrees from the London School of Economics and Ivey Business School respectively. He is a practising neurosurgeon and founded Bodhi Research in 2016. Dr. Jha, through fiscal conservatism, key partnerships and collaborations, has brought his initial investors an approximate return of 1500%. Upon closing of the Share Purchase, Dr. Jha will be appointed as Chairman & CEO of Green Relief Innovations.
About Green Relief
Green Relief Inc. is a Canadian licensed producer of medical cannabis under Health Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR). Founded in 2013, Green Relief is one of the only organizations in the world that uses aquaponics, resulting in fresh, pure medicinal cannabis products grown without harmful pesticides and fertilizers while not compromising quality or yields.
About Origin House
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 timing and completion of the transactions contemplated under the Agreement, the execution of the Company's strategy, new opportunities, the Company's timing and process for expansion in Canada and globally, timing for the Company's acquisition of 180 Smoke, new opportunities, future growth and other statements.
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