Lineage Announces Termination of Agreements With Mt. Baker and Quinsam
TORONTO, Nov. 29, 2018 (GLOBE NEWSWIRE) — Lineage Grow Company Ltd. (the “Company” or “Lineage“) (CSE:BUDD) today announced that it has terminated each of a licensing and services agreement and equipment lease agreement (collectively, the “Mt. Baker Agreements”) dated January 31, 2018 with Mt. Baker Greeneries, LLC. (“Mt. Baker”). The Mt. Baker Agreements would have allowed Lineage to assist Mt. Baker in maximizing the efficiency of its cultivation operations at Mt. Bakers facility in Bellingham, Washington. Lineage was saddened to learn that the managing member of Mt. Baker, Mr. Mark Landreth, passed away in early 2018. Accordingly, Mr. Landreth’s passing makes it improbable for Mt. Baker to perform its obligations under the Mt. Agreements. Lineage notified Mt. Baker of the termination of the Mt. Baker Agreements effective as of October 31, 2018.
In addition, Lineage entered into a termination agreement with Quinsam Capital Corp. (“Quinsam“) terminating a proposed purchase by Lineage of Quinsam’s interest in Herbiculture Inc. As consideration for the termination, Lineage will issue 200,000 Lineage common shares to Quinsam at C$0.19 per common share for a total amount of $38,000.
“Lineage completed the acquisition of the Terpene Station dispensaries in Oregon and have entered into agreements with three California based operators,” said Peter Bilodeau, CEO of Lineage. “In addition to running our two dispensaries in Oregon, Lineage is pursuing a proposed reverse take-over with FLRish, Inc. d/b/a Harborside (“Harborside“), operating Harborside brand dispensaries in Oakland and San Jose and a farm in Oakland, a proposed acquisition of Walnut Oaks LLC d/b/a Agris Farms (“Agris Farms“), a producer in Yolo County, California, and a proposed acquisition of Lucrum Enterprises Inc. d/b/a LUX Cannabis Dispensary (“LUX“), a dispensary in San Jose, California. We are now focusing on our Oregon operations and on our proposed California transactions.”
About Lineage Grow Company Ltd.
Lineage Grow Company Ltd. is a reporting issuer that is listed on the Canadian Securities Exchange (“CSE“). Lineage is currently focused on operating two retail licensed stores located in two prominent cities in Oregon (Portland and Eugene), and on assembling licensed operators with good growth potential and superior management, either through direct acquisition or through joint ventures, with an aim towards building a dominant vertically-integrated cannabis business that leverages best-in-class cultivation, brands, distribution, and retail assets. Lineage has entered into a purchase agreement with Agris Farms and a binding letter of intent to acquire LUX. In addition, Lineage and Harborside have entered into a binding letter agreement pursuant to which Lineage will acquiring all the issued and outstanding securities of Harborside in a reverse takeover transaction.
For updates on the Company’s activities and highlights of the Company’s press releases, investor deck and other media coverage, please visit Lineage’s web site (under construction) at www.lineagegrow.com
For further information, please contact:
Peter Bilodeau, Director & CEO
Lineage Grow Company Ltd.
Phone: (519) 919-6500
This news release may contain “forward-looking” statements and information based on current expectations. These ”forward looking” statements may use such words as ”may”, ”will”, ”expect”, ”believe”, ”plan” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. These statements should not be read as guarantees of future performance or results. Forward looking statements in this transaction include: management’s expectation on issuing shares to Quinsam and the terms of the proposed issuance; and management’s plan to focus on the Oregon operations and on the transactions with Harborside, Agris Farms and LUX. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such risks include operational risks; U.S. federal regulation risks; variation in state regulations; change of cannabis laws; security risks; risks related to operational permits and authorizations; risks on liability, enforcement complaints etc.; banking risks; risk that the Company’s limited operating history makes evaluating its business and prospects difficult; need for funds; risk that the Company may be exposed to infringement or misappropriation claims by third parties, which, if determined adversely to the Company, could subject the Company to significant liabilities and other costs; risk that the Company may need to incur significant expenses to enforce its proprietary rights, and if the Company is unable to protect such rights, its competitive position could be harmed; risks related to trade secrets; risk that Company is dependent upon its existing management, its key research and development personnel and its growing and extraction personnel, and its business may be severely disrupted if it loses their services; risk of potential for conflict of interest; risk related to inability to innovate and find efficiencies; competition risks; risk that a drop in the retail price of medical marijuana products may negatively impact the business; consumer acceptance of marijuana; potential future acquisitions and/or strategic alliances may fail to materialize and may have an adverse effect on the Company’s ability to manage its business; risk on management of growth; risk related to general economic trends; tax risk and currency fluctuation risks. For details of the risks faced by the Company, please see the Company’s listing statement dated February 26, 2018 and the Company’s revised management’s discussion and analysis dated October 22, 2018, available at www.sedar.com under the Company’s profile. There is no certainty that any of these events will occur. Although such statements are based on management’s reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by applicable securities laws.
Company’s securities have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. Persons”, as such term is defined in Regulation S under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.