Grown Rogue To Expand Into Michigan Market, Enters Purchase Agreement With Golden Harvests
Grown Rogue International Inc. (OTC:GRUSF) (CSE:GRIN) said Wednesday that its subsidiary GR Michigan, LLC has signed a purchase agreement with Golden Harvests, LLC that grants the company the right to purchase a 60% controlling interest in Golden Harvests pending municipal and state approval.
Golden Harvests, a Michigan-based licensed operator, operates an 80,000-square-foot cultivation facility in Bay City.
The deal calls for Grown Rogue to pay $810,000 in cash and issue 800,000 common shares to existing Golden Harvests members in four tranches.
“Michigan remains an important location for our continued growth and Grown Rogue has been committed to finding the right, fully-licensed partner for a successful expansion into this market,” Grown Rogue CEO Obie Strickler said in a statement.
“By leveraging over a decade of operational, grow and sales experience in Oregon, we plan to build on Golden Harvests’ solid foundation to increase yields, develop new grow rooms and establish partnerships with the best retailers in the state.”
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In addition, Grown Rogue has entered into an exclusive management services agreement with Golden Harvests to commence offering consulting services, and said it is dedicated to investing $1.2 million to support enhancements at the facility.
“Grown Rogue has proven to be one of the top producers in the industry and their unrelenting focus on quality, consistency and consumer education made this partnership a natural fit,” Dave Pleitner, founder and owner of Golden Harvests, said in a statement.
“The Michigan market has untapped growth potential and with Grown Rogue’s help, we plan to lead the charge with best-in-class flower cultivated right here in Michigan.”
Grown Rogue’s shares were trading 11.05% higher at 8 cents per share at the time of publication Wednesday.
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