Partnership to deliver mutual benefits for investors
TORONTO, June 21, 2018 /CNW/ - Cannabis Growth Opportunity Corp. ("CGOC") (CSE: CGOC) today announced that it has entered into a strategic partnership with Battalion Consol Corp. ("Battalion") to accelerate the monetization of mutual private investments and share new investment opportunities.
As part of this agreement, Battalion has agreed to subscribe for 200,000 Units in CGOC at a purchase price of $2.50 per Unit. Each Unit will consist of one common share and one half common share purchase warrant. Also, as part of the agreement, Battalion will issue $500,000 CAD (face value) of Senior Convertible Notes to CGOC. The partnership represents an increased investment in CGOC by the private investment equity firm.
"We are excited to add to our current holdings in CGOC at this level," said John Paul Jeffrey, Managing Director, Battalion. "Based on the June 1 NAV of $2.27, our analysis of CGOC's private portfolio holdings and the probability of near-term markups and liquidity events --- as exemplified by the Dream Water sale --- we expect the stock to appreciate over the coming months."
"Battalion's portfolio of EBITDA-positive private and public companies presents opportunities for mutual value creation by way of potential synergies and partnerships," said Jamie Blundell, President & COO, CGOC. "We aim to give our investors access to the expertise and focus needed to grow in this unique market. With our overlapping ownership of private investments, collaborating with Battalion to advance projects will return significant long-term growth for them."
Completion of the partnership is subject to the receipt of all necessary regulatory approvals, including the approval of the CSE.
About Cannabis Growth Opportunity Corporation:
Cannabis Growth Opportunity Corp. is a unique investment corporation incorporated under the laws of Canada. CGOC's investment objectives are to provide holders of common shares long-term total return through capital appreciation by investing in an actively managed portfolio of securities of public and private companies operating in, or that derive a portion of their revenue or earnings from, products or services related to the cannabis industry. http://cgocorp.com/.
About Battalion Consol Corporation:
Battalion Consol Corp. is private equity investment firm based in Toronto with global operations, consulting services, and lending interests in the Canadian and American cannabis sectors. http://battcc.com/.
This press release is not an offer of securities for sale in the United States, and the securities described in this press release may not be offered or sold in the United States absent registration or an exemption from registration. The securities have not been and will not be registered under the United States Securities Act of 1933.
SOURCE Cannabis Growth Opportunity Corporation
For further information: Jamie Blundell, President and Chief Operating Officer, Cannabis Growth Opportunity Corporation, 647-946-2205, [email protected]