World Class Extractions Subsidiary Acquires $11.5 Million Senior Secured Convertible Debenture from Aphria for $5,000,000
Debenture is secured against all of the assets of HydRx Farms Inc., a Whitby, Ontario research, cultivation, and extraction facility
VANCOUVER, BC / ACCESSWIRE / October 1, 2020 / World-Class Extractions Inc. (CSE: PUMP) (FRA:WCF) (OTCQB:WCEXF) (the “Company” or “World-Class”), is pleased to announce that its 50%-owned subsidiary, Cobra Ventures Inc. (“Cobra”), has acquired a senior secured convertible debenture of HydRx Farms Ltd. o/a Scientus Pharma (“HydRx”) in the principal amount of CDN$11,500,000, plus accrued and unpaid interest and charges (the “Debenture”) from Aphria Inc. (“Aphria”) (TSX: APH or USOTCQB: APHQF).
The Debenture is secured against all of the assets of HydRx, including its real estate assets consisting of a 45,000 square foot manufacturing and distribution facility located on a 2.3 acre parcel of land in Whitby, Ontario, built to GMP and GPP standards. The Debenture is currently in default.
Rosy Mondin, CEO of World-Class stated: “World-Class is pleased to report its participation in the acquisition of this debenture. This interest-bearing, $11.5 million, first-position debenture is secured against all of the assets of HydRx, which includes a state-of-the-art facility and business in which over $50 million has been invested to-date. Having completed its most recent Health Canada inspections, the HydRx site is fully licensed to cultivate, process, produce and sell medical and recreational cannabis and cannabis products. We believe this is one of, if not the most advanced cultivation, extraction, and Cannabis 2.0 production facilities in Canada. We continue to evaluate the opportunities that our investment in this debenture presents for World-Class.”
Cobra is a venture between World-Class and a group of investors led by Richard Goldstein, Co-founder and CFO of Canntab Therapeutics Ltd., a Canadian license holder under the Cannabis Act, and President of First Republic Capital Corporation, a Canadian licensed Exempt Market Dealer (through the Ontario Securities Commission).
HydRx owns and operates a 45,000-square foot manufacturing and distribution facility in Whitby, Ontario built to GMP and GPP standards. HydRx holds numerous licenses issued by Health Canada under the Cannabis Act to cultivate, produce and sell cannabis products, including the extraction of cannabis resin for use in formulations including cannabinoid-based oils, capsules and other derivative products. HydRx is also a Licensed Dealer under the Narcotics Control Act and one of a limited number of license holders in Canada authorized to conduct R&D and fully handle cannabinoid products with the ability to wholesale, buy, process and sell cannabinoid derivatives, from and to other Cannabis Act license holders, as well as international markets.
World-Class is an innovation-driven company with a principle focus on the rapidly evolving cannabis and hemp industries. Through its subsidiaries Soma Labs Scientific Inc. and Greenmantle Products Inc., World-Class deploys and manages custom-built extraction centres utilizing its custom systems, technology, and processes to efficiently produce high-quality cannabis and hemp concentrates and end-products. In addition, through its subsidiary Pineapple Express Delivery Inc., the Company offers compliant and secure delivery of government regulated products, including medical and recreational cannabis in Ontario, Manitoba and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan.
World-Class Investor Relations
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
SOURCE: World-Class Extractions Inc.
View source version on accesswire.com: