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by Stockwatch Business Reporter
The TSX Venture Exchange closed down 5.64 points to 614.88 Thursday. Navin Varshney's NEX shell, Earny Resources Ltd. (ERN: halted), has submitted a filing statement for its acquisition of a group of U.S. companies which together comprise a marijuana vape manufacturing and distribution business. The group includes Orchid Brands LLC, CR International Inc. and six more entities, and the business involves selling the Orchid Essentials line of marijuana vape products in California and Oregon. The shell, which has 6,444,998 shares issued, will issue 101,507,711 shares to the group's shareholders. On closing of the acquisition, the resulting issuer will be called Orchid Ventures Inc.
The Orchid Essentials group is based in Irvine. Its founders are Corey Mangold and Rene Suarez, who are most likely the "C" and the "R" in CR International. They founded Orchid Brands in February, 2017, and six months later they began selling the Orchid Essentials products. There are now 11 marijuana vape flavours, including Tropical Trainwreck, Apple Cookies, Strawberry Cough and Sour Diesel. The group does not grow its own marijuana, but it hopes to do this eventually. It is still awaiting licences. In its fiscal year ended May 31, 2018, the group lost $1.7-million (U.S.) on revenue of $2.47-million (U.S.). To finance its ambition to sell more products (such as marijuana concentrates) in more states as well as in Canada, Earny the shell is selling a $5-million private placement at 33 cents.
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