CannaRoyalty (CSE:CRZ) (CSE:CRZ.CN) (CNSX:CRZ) (OTCQX:CNNRF) provides an update on Rich Extracts
OTTAWA, ONTARIO - November 10, 2017 (Investorideas.com Newswire) CannaRoyalty Corp. (CSE:CRZ)(CSE:CRZ.CN)(CNSX:CRZ)(OTCQX:CNNRF) ("CannaRoyalty" or the "Company"), a fully integrated, active investor and operator in the legal cannabis industry today provided an update on Rich Extracts ("RE"). As disclosed in the Company's last financial statements, a lawsuit was previously filed against RE by CURA, a raw materials supplier for payment of debts owing. CannaRoyalty successfully negotiated a settlement agreement between the two parties, but RE was subsequently unable to successfully deliver on the terms of the settlement.
The Company was informed today that Mr. R. Wilkinson, the principal of Rich Extracts, was arrested in Nebraska earlier this week, for possession of marijuana with intent to distribute. The possession and distribution of marijuana are illegal in Nebraska. This development has accelerated the Company's efforts to enforce on its security interest in Rich Extracts and remove Mr. Wilkinson from the Rich Extracts extraction business. Following these recent developments, CannaRoyalty has alerted the Oregon Liquor Control Commission (OLCC). CannaRoyalty intends to work with the OLCC and relevant state authorities to take all available legal action to realize its security over Rich Extracts and its extraction facility.
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As previously announced CannaRoyalty has advanced approximately USD$2.75 million in debt to Rich Extracts, and CannaRoyalty has the right to convert USD$2.15 million of this debt into a 30% royalty stream on Rich Extracts' gross sales in perpetuity.
CannaRoyalty is an active investor and operator in the legal cannabis sector. Our focus is building and supporting a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Our management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt, licensing agreements and its own branded portfolio.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in CannaRoyalty's periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements including the Company's expectations with respect to pursuing new opportunities and its future growth and other statements of fact.
Although CannaRoyalty has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US Federal Laws; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. CannaRoyalty disclaims any intention or obligation to update or revise such information, except as required by applicable law, and CannaRoyalty does not assume any liability for disclosure relating to any other company mentioned herein.
LodeRock Advisors Inc.
Jonathan Ross, CFA
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