Ms. Penny Green reports
YIELD GROWTH ANNOUNCES LICENSING AGREEMENT FOR $1 MILLION CONSIDERATION FOR U.S. RIGHTS TO 56 WHITE LABEL FORMULATIONS FOR CBD AND THC INFUSED PRODUCTS
The Yield Growth Corp.'s wholly owned subsidiary, Urban Juve Provisions Inc., has entered into a definitive agreement to license 56 product formulas for THC (tetrahydrocannabinol) and CBD (cannabidiol) infusion to Antler Retail Holdings Inc. in California for sale in the United States.
Pursuant to the agreement, Antler Retail has agreed to pay $1-million for a perpetual licence in the United States to a catalogue of white-label formulas consisting of 10 personal care products designed for THC infusion, one set of capsules formulated with ingredients to help prevent hangovers, six CBD skin care formulations, eight formulations for a CBD men's line, three unisex CBD personal care products, and eight teas and 20 edibles for CBD and THC infusion, including hard candies and gummies, for a total of 56 formulas.
Antler Retail has agreed to issue five million shares of common stock of its parent company, Antler, a private corporation, to Urban Juve as payment for $1-million in licensing fees at a deemed value of 20 cents per share. Urban Juve has a right of first refusal to act as distributor, to supply CBD and to act as the manufacturer on all CBD products developed by Antler Retail using the licensed formulas.
Antler is a related party to Yield Growth as Krystal Pineo and Penny Green are both directors and significant shareholders of Yield Growth and Antler and together control 30 per cent of the outstanding shares of Antler, prior to the closing of this transaction. The 20-cent deemed fair market value of the Antler shares was assessed by Urban Juve management based on the price of Antler's most recent private placement, whereby Antler raised approximately $1.5-million at 20 cents per unit from non-related parties, each unit consisting of one share and one share purchase warrant. Urban Juve has agreed to enter into an escrow agreement pursuant to which the five million Antler shares will be released from escrow over a three-year period commencing on completion of an initial public offering by Antler. Antler has signed an engagement letter with a Canadian broker dealer to complete an initial public offering on a best-effort basis. However, there is no obligation and no guarantee that Antler will complete an initial public offering.
About The Yield Growth Corp.
Yield Growth is disrupting the $4.2-trillion global wellness market by harnessing the power of hemp-infused and cannabis-infused products. Its consumer brand, Urban Juve, has signed over 110 retail locations to sell its products in North America and is now launching e-commerce sales in China through Wechat.
Through its subsidiaries, Yield Growth is commercializing over 200 cannabis beauty, wellness and beverage products. Yield Growth also has white-label formulas available for licence and generates revenue through multiple streams, including licensing, services and product sales.
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