RMMI Corp. Announces Purchase of 136,077 kg of High CBD Hemp Biomass From Clearwater CannGrow
June 23rd, 2020
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CALGARY, AB, June 22, 2020 /CNW/ – RMMI Corp. (“RMMI” or the “Company“) (CSE: RMMI), a licensed producer and processor under the Cannabis Act (Canada), is pleased to announce that it has entered into a biomass purchase agreement for 136,077 kg of high CBD hemp (the “Hemp Biomass“) with Clearwater CannGrow Ltd. (“Clearwater“) as part of its previously announced Strategic Shift and Strategic Relationship with Clearwater (the “Purchase Agreement“). Under the Purchase Agreement Clearwater has guaranteed an average 10% CBD content in the Hemp Biomass. The purchase price of the 136,077 kg of Hemp Biomass will be satisfied through the issuance of 10,222,222 common shares of RMMI at a price of $0.225 and deferred payment of $2.5 million in cash payable from sale proceeds of the processed Hemp Biomass. The first delivery of the Hemp Biomass is expected before the end of July.
The Hemp Biomass will be processed at RMMI’s Health Canada licensed facility and is expected that the 136,077 kg Hemp Purchase can produce approximately 6,000 kg – 10,000 kg of high-quality CBD isolate. RMMI is currently in the process of configuring and equipping its facility into large-scale extraction and processing operations. The reconfiguring is expected to be completed in about 60 days with construction costs of approximately $250,000.
“The completion of the Hemp Biomass purchase with Clearwater is a major step forward in the Company’s strategic shift away from the capital-intensive business of cannabis cultivation and towards becoming the lowest cost producer of CBD concentrates for a rapidly expanding global market” said Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer. “We look forward to continuing to develop our strategic relationship with our partner Clearwater and welcome them as one of RMMI’s major shareholders.”
About RMMI Corp.
RMMI is an Alberta based company whose wholly owned subsidiary, Rocky Mountain Marijuana Inc., is licensed under the Cannabis Act (Canada) to cultivate, produce, process and sell cannabis in various forms. RMMI’s vision is to build a low cost, highly efficient, hemp processing and CBD extraction business focused on serving a premier set of customers in Canada and abroad.
All information in this Press Release relating to Clearwater CannGrow Ltd. is the sole responsibility of Clearwater. Management of RMMI has not independently reviewed this disclosure nor has RMMI management hired any third-party consultants or contractors to verify such information.
Certain information set forth in this news release contains forward-looking statements or information (“forward-looking statements“). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Trading in the securities of RMMI should be considered highly speculative.
For further information: Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer, [email protected], 403-910-9191
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