Grown Rogue International Inc., a multi-state cannabis company with operations and assets in Oregon and Michigan, announced the closing of the acquisition, previously announced last year, with HSCP, LLC, ) a subsidiary of Acreage Holdings Inc. for a state-of-the-art 30,000 sq. ft. indoor facility located in Medford, Ore. The acquisition, which closed this past week, brings Grown Rogue's total indoor production capacity, including the Golden Harvests, LLC assets in Michigan, to 127,000 sq ft.
All financial information is provided in U.S. dollars unless otherwise indicated.
"We are pleased to complete the closing of this strategic asset which has allowed us to solidify our position as the #1 flower producer in Oregon1" said Obie Strickler, chief executive officer of Grown Rogue. "This indoor facility resulted in us tripling our indoor production in Oregon during 2021, as we operated under a management services contract, and with a full year of operations positions us to hit our $20 million revenue run-rate target in 2022 with a 30 to 40% EBITDA margin. The facility is located within five minutes of our existing Grown Rogue facility and the proximity has allowed us significant economies of scale, resulting in our industry leading cost structure. With all retrofits completed and implementation of our proprietary operating procedures, we have seen flower yields and quality consistently exceed our forecasts.
The company also announced that it has issued a total of 217,500 common shares to certain directors, consultants, and employees of the company relating to services rendered at an issue price of $0.10 per share.
The company has also granted options to purchase an aggregate of 485,000 common shares of the company (the "Stock Options") to certain employees. The Stock Options are exercisable at a price of $0.15 per share for a period of 4 years and will vest over 2 years.
The common shares described above and the common shares underlying the Stock Options are subject to a four month and one day hold period expiring on August 20, 2022.
Categories: Michigan, Business