Orchid Ventures announces the termination of the First Amended and Restated Asset Purchase Agreement, dated July 29, 2019
IRVINE, CA / ACCESSWIRE / October 28, 2019 / Multi-State cannabis operator Orchid Ventures, Inc. (CSE: ORCD)(OTC:ORVRF) ("Orchid Ventures" or the "Company") announces that it has terminated the First Amended and Restated Asset Purchase Agreement, dated July 29, 2019, between Orchid and GreenBloom Cannabis Company ("Seller"). After conducting due diligence and integrating both management teams, the Company was ultimately not satisfied that the acquisition was in the best interest of its shareholders. The assets under purchase were not in the financial or operational condition represented by the Seller, as there were liens that violated the purchase agreement and undisclosed investigations by the Oregon Liquor Control Commission (OLCC) which further created a major conflict for the Company. As part of this termination, the Company's subsidiary, CR Property Management, LLC, also terminated its commercial lease for the warehouses in Calexico.
"The unwinding of the Greenbloom transaction is unfortunate, but is a necessary step in order to both protect the Company and its shareholders plus ensure that the Company can continue to focus on growth opportunities and further strengthen our financial performance. Despite what we believed to be the potential upsides, as we continued to conduct due diligence, there were a number of major concerns uncovered. The condition of the assets and the ongoing OLCC investigations created a situation where Orchid had no choice but to unwind the transaction." says Corey Mangold, CEO & Founder of Orchid Ventures. "The transaction was founded on solid principles but the assets did not end up being what was represented to us. The unwinding of this deal allows us to focus on our brands and products as well as other more solid collaborations in the pipeline that seek to add value. "
ABOUT ORCHID ESSENTIALS
Orchid Essentials is an Irvine, CA-based multi-state operator that launched in Oregon and California in August 2017 and has since developed a mass-market brand and loyal consumer following with its premium cannabis products. Orchid's product lines are currently sold in 350+ dispensaries across California and Oregon and are handcrafted and designed for optimal user-experience and overall enjoyment. The company's proven processes and passion for what it does carry through into its products. The end result is an unparalleled experience for new and practiced cannabis users alike. Orchid plans to expand its operations into new national markets, as well as global markets such as Latin America and Europe. With a continued focus on brand and intellectual property development, Orchid will continue to execute strategic acquisitions to further solidify it's vertically integrated infrastructure with the goal of becoming a dominant premium cannabis company in the United States. Orchid's management brings significant branding, product development and distribution experience with a proven track record of scaling revenues, building value-generating partnerships and creating enterprise value. Learn more at https://orchidessentials.com/
ON BEHALF OF THE BOARD OF DIRECTORS - ORCHID VENTURES, INC.
Corey Mangold
CEO and Director
[email protected]
Investor Relations
Antonio Cruz
(949) 769-3859
[email protected]
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Safe Harbor Statement
Except for historical information contained herein, statements in this release may be forward-looking and made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to Orchid Ventures, Inc. and Orchid Essentials any of its affiliates or subsidiaries (collectively, the "Company") or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the Company's Canadian securities regulatory filings with sedar.com, Factors which could cause actual results to differ materially from these forward-looking statements include such factors as (i) the development and protection of our brands and other intellectual property, (ii) the need to raise capital to meet business requirements, (iii) significant fluctuations in marketing expenses, (iv) the ability to achieve and expand significant levels of revenues, or recognize net income, from the sale of our products and services, (v) the Company's ability to conduct the business if there are changes in laws, regulations, or government policies related to cannabis, (vi) management's ability to attract and maintain qualified personnel necessary for the development and commercialization of its planned products, and (vii) other information that may be detailed from time to time in the Company's Canadian securities regulatory filings with sedar.com. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Orchid Ventures, Inc.