FINORE MINING MAKES FIRST PAYMENT TO VENDORS OF KUSHTOWN USA AND ENGAGES REAL ESTATE FIRM TO SOURCE PROPERTY FOR MANUFACTURING
November 04 2016 - 9:00AM
InvestorsHub NewsWire
FINORE MINING MAKES FIRST
PAYMENT TO VENDORS OF KUSHTOWN USA AND ENGAGES REAL ESTATE FIRM TO
SOURCE PROPERTY FOR MANUFACTURING AND DISTRIBUTION OF
PRODUCTS
Vancouver, BC -- November 4, 2016 -- InvestorsHub NewsWire
-- Finore Mining Inc.
(“Finore” or the "Company")
(CSE: FIN; OTC:FNREF) is pleased to announce
that pursuant to the terms of the letter agreement with the
shareholders of Kushtown USA, the company has made a first
cash payment to the shareholders of Kushtown USA LLC
for $50,000 (U.S.) on November 3, 2016. In addition, the
Company announces that it is identifying warehousing and
distribution locations across California to operate the Kushtown
bottling operation.
On October 27, 2016 Finore signed a letter agreement dated
October 27, 2016 (the “Assignment Agreement”) with
an arm’s length private British Columbia company (the
“Assignor”), pursuant to which the Assignor has
assigned to the Company the rights and obligations of a letter
agreement dated October 25, 2016 (the “Letter
Agreement”) between the Assignor and Kushtown USA, LLC
(“Kushtown”) a private California limited
liability company. Pursuant to the terms of the Letter
Agreement, the Company will acquire all of the issued and
outstanding securities of Kushtown (the
“Transaction”).
Pursuant to the terms of the Letter Agreement, the Company was
required to, within 14 days of signing of the Letter Agreement, pay
the shareholders of Kushtown aggregate cash consideration of
US$50,000. Finore has conducted its due diligence on the
transaction and has made the required USD$50,000 payment earlier
than required. Finore is working aggressively to finalize all
documentation required to complete the transaction with Kushtown
and plans to file all required documentation with the Canadian
Securities Exchange in the coming weeks.
The Company also reports that the company has entered into a
consulting agreement with 420 Real Property to help
Kushtown identify and acquire a warehouse and distribution center
to expand the operation of the Kushtown business in a more robust
way.
About 420 Real Properties
420 Real Property is a fully licensed real estate
consulting company that specializes in cannabis friendly properties
for lease and purchase. 420 Real Property has specific
expertise in the state of California. 420 Real Property
Founder and President Paul K. Thompson (a licensed California Real
Estate Broker) has many years of experience in helping clients
related to the cannabis industry.
Kushtown Senior Executive Search
The Company’s current Board of Directors are in receipt of
expressions of interest for senior executive positions for Kushtown
from highly qualified applicants. In addition, Finore is in
talks with several large, reputable global executive search firms
with the aim of identifying and hiring a highly qualified retail
branding executive for the Kushtown business.
Letter Agreement
Pursuant to the terms of the Letter Agreement, the Company will
make certain cash payments and advances and issue to Kushtown
shareholders an aggregate of 8,440,845 common shares in the capital
of the Company (the "Payment Shares") at a deemed price of CDN$0.15
per Payment Share for total share consideration of CDN$1,266,126.75
(US$950,000). The Payment Shares will be subject to escrow
conditions and/or resale restrictions as required by applicable
securities laws and the policies of the Canadian Securities
Exchange (the "CSE"). Pursuant to the terms of the Assignment
Agreement, the Company will, upon closing of the Transaction, issue
2,500,000 common shares to the Assignor at a deemed price of
CDN$0.15 per share and shall grant the Assignor a 2% net profits
interest royalty on all Kushtown branded products sold by the
Company.
The Transaction remains subject to certain closing conditions,
including, completion of due diligence, the negotiation and signing
of a definitive agreement and obtaining all necessary approvals,
including, approval of the respective boards, the approval of the
CSE, and if applicable, shareholders of the Company. There
can be no guarantees that the Transaction will be completed as
proposed or at all.
None of the Payment Shares to be issued pursuant to the Transaction
have been or will be registered under the U.S. Securities Act of
1933, as amended (the "U.S. Securities Act"), or any state
securities laws, and any Payment Shares issued pursuant to the
Transaction are anticipated to be issued in reliance upon available
exemptions from such registration requirements pursuant to Rule
506(b) of Regulation D and/or Section 4(a)(2) of the U.S.
Securities Act and applicable exemptions under state securities
laws. In addition, the Payment Shares to be issued pursuant to the
Transaction under an exemption from the registration requirements
of the U.S. Securities Act will be "restricted securities" as
defined under Rule 144(a)(3) of the U.S. Securities Act and will
contain the appropriate restrictive legend as required under the
U.S. Securities Act.
The CSE does not accept responsibility for the adequacy
or accuracy of this release.
Cautionary Statement
Regarding “Forward-Looking” Information
The forward-looking information
contained in this press release is made as of the date of this
press release and, except as required by applicable law, the
Company does not undertake any obligation to update publicly or to
revise any of the included forward-looking information, whether as
a result of new information, future events or otherwise, except as
may be required by law. By its very nature, such forward-looking
information requires the Company to make assumptions that may not
materialize or that may not be accurate. This forward-looking
information is subject to known and unknown risks and uncertainties
and other factors, which may cause actual results, levels of
activity and achievements to differ materially from those expressed
or implied by such information.
Listing: CSE - Symbol: FIN, OTC: FNREF
Investor Contact: info@finoremining.com