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TORONTO, Nov. 10, 2020 /CNW/ - 48North Cannabis Corp.
("48North" or the "Company") (TSXV: NRTH) is pleased to announce
that it has entered into a term loan with a senior secured lender
for total proceeds of $3.25
Annouced on the heels of of its previously announced private
placement offering with Cormark Securities Inc. for aggregate gross
proceeds of $3,415,050, today's
strategic announcement will be used to provide the Company with
additional working capital to support 48North in becoming one of
Canada's premier consumer-centric
"48North remains laser-focused on becoming one of Canada's premier consumer-centric cannabis
companies. Today's announcement, alongside the Company's equity
financing announced last week, lays the foundation for ongoing and
accelerated growth while reinforcing 48North's strength as a leader
in the Canadian cannabis market," said Charles Vennat, CEO of 48North.
FINANCING TERMS AND DETAILS
The secured loan has a maturity date of twenty four months and
bears interest at a per annum rate of prime + 4.55%. It is secured
by the Company's 45,550 sf of industrial property on approximately
5 acres of land at 47 Morton Avenue East, Brantford, Ontario.
In addition, the Company has granted an aggregate of 4,540,000
stock options (each an "Option") to certain directors, officers,
and employees of the Company. The Options vest through the passage
of time or the achievement of specific goals. The specific goals
for the Options vary based upon the duties and responsibility of
the recipient. Each Option is exercisable into one common share
("Share") of the Company at a price of $0.155 per Share for a period of three years from
the date of grant. All of the Options have been granted pursuant to
the Company's Stock Option Plan which has been previously approved
by the Company's shareholders and the TSX Venture Exchange.
48North Cannabis Corp. (TSXV: NRTH) is a vertically integrated
cannabis company focused on manufacturing high-quality products,
building progressive and thought provoking brands, and low-cost
cultivation. 48North is developing formulations and manufacturing
capabilities for its own proprietary products, as well as
positioning itself to contract manufacture similar products for
third parties. 48North operates Good:Farm, a 100-acre organic
cannabis farm which produces organically-grown cannabis, securing a
significant first-mover advantage in the production of low-cost,
next-generation, extract-based cannabis products. In addition,
48North operates two indoor-licensed cannabis production sites in
Ontario. 48North cultivates unique
genetics at its wholly owned subsidiary, DelShen Therapeutics Corp.
and processes cannabis and manufactures next-generation cannabis
products at Good & Green Corp., both Licensed Producers under
the Cannabis Act.
DISCLAIMER & READER ADVISORY
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. Certain statements contained in this press release
constitute forward-looking information. These statements relate to
future events or future performance. The use of any of the words
"could," "intend," "expect," "believe," "will," "projected,"
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on the parties' current
beliefs or assumptions as to the outcome and timing of such future
events. Actual future results may differ materially. Please refer
to the Company's SEDAR filings for further details concerning the
risks associated with the Company's business. The forward-looking
information contained in this release is made as of the date hereof
and the parties are not obligated to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained herein.
Public health crises, including the ongoing novel coronavirus
(COVID-19) pandemic, could have significant economic and
geopolitical impacts that may adversely affect the Company's
business, financial condition and/or results of operations.
SOURCE 48North Cannabis Corp.