TORONTO, Aug. 23, 2018 (GLOBE NEWSWIRE) — Emblem Corp. (TSXV: EMC, OTCQX:EMMBF) (“Emblem” or the “Company”) has established a working capital advance (the “Advance”) for Natura Naturals Holdings Inc. (“Natura”) to support the completion of phase 1 construction while the two companies complete due diligence and negotiation of a definitive agreement in connection with the previously announced acquisition of Natura by Emblem.
Based in Leamington, Ontario, Natura operates a 662,000 sq. ft licensed greenhouse that is currently undergoing a phased conversion and retrofit. After the completion of phase 1 in 2018, Natura expects to achieve an annual run-rate of 15,000 kgs. Natura expects to have its first harvest early in Q4. Once completed in 2019, the facility is expected to bring total annualized cannabis production capacity to approximately 70,000 kg per year.
To further drive our recent revenue growth and support new distribution agreements, including the Ontario Cannabis Store and the Alberta Gaming, Liquor and Cannabis Commission, maintaining momentum of the Natura buildout is a high priority. Immediate production from Natura addresses the growing demand from the new markets coming online for Emblem. The near-term supply supports the continued execution of our aggressive growth strategy.
Nick Dean, CEO of Emblem
The Advance funding is comprised of a one-year convertible debenture for an aggregate principal amount of up to $2,000,000, with an interest rate similar to Natura’s other funding obligations and can be pre-paid at any time during the term. The first tranche of $500,000 will be advanced on August 23, 2018. Proceeds of the Advance may only be used on account of Natura’s construction costs in accordance with an agreed upon budget between Emblem and Natura. The Advance is convertible into Natura shares at $0.80 per share plus one full share purchase warrant exercisable at $1.05. In the event Emblem elects to convert, Natura and Emblem would enter into an additional 2,000kg supply agreement on substantially the same terms as the supply agreement completed on July 17, 2018.
About Natura Naturals
Based in Leamington, Ontario, Natura Naturals is a licensed cultivator of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The company’s cultivation facility is capable of producing plants in a 662,000+ square feet greenhouse facility under optimal growing conditions. Natura grows high-quality hydroponic cannabis which can be used for various medical and recreational applications. Natura has an extensive genetics library and continues to develop innovative products for the Canadian and International marketplace.
About Emblem
Emblem, through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the ACMPR. Emblem’s state-of-the-art indoor cannabis facility and research and development laboratory is located in Paris, Ontario. Led by an experienced management team of healthcare executives, accomplished marketing professionals, and cannabis experts, Emblem is focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem is also the parent company of GrowWise Health Limited, one of Canada’s leading cannabis education services. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange.
