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Tidal target MichiCann has 17 dispensary licences

2019-10-18 11:05 ET - News Release

Mr. Theo van der Linde reports

TIDAL PROVIDES CORPORATE UPDATE

Tidal Royalty Corp. has provided an update further to the executed business combination agreement with MichiCann Medical Inc. (operating as Red White & Bloom).

The transaction with MichiCann is steadily and strategically moving forward, staying true to the original overall strategy, which is to achieve critical mass within Tidal's target markets while rapidly and aggressively expanding in the United States cannabis and cannabidiol business.

Tidal wants to assure its shareholders that it is continuing to closely monitor public market conditions, drawing on its own experience in capital market strategy and seeking the advice of many seasoned capital markets veterans to identify the appropriate time to close the MichiCann amalgamation transaction.

Tidal has also provided the following operational and production updates from MichiCann.

Operational updates:

  • MichiCann's investee in Michigan now possesses 17 dispensary (provisioning centre) licences and is strategically moving toward its goal of 25 licences by year-end.
  • Investee has obtained over 20 Class C grow licences (each covering 1,500 plants).
  • Adding this month (through acquisition), investee's near-term cultivation capacity will include a fully operational 28,000-square-foot indoor cannabis grow operation.
  • Investee will extend Michigan's outdoor growing season with new self-contained year-round pods, providing additional immediate growing space without significant new construction costs and timelines.
  • MichiCann continues to negotiate definitive agreements for a California acquisition; additional details will be provided as negotiations progress.
  • MichiCann has signed a term sheet for $50-million (U.S.) (approximately $66-million) in debt financing. Proceeds from this will be used to replace the previously reported $27-million (U.S.) bridge loan, provide additional capital to complete the previously announced Illinois facility purchase and for additional expansion capital.
  • MichiCann has successfully launched its 1Kure brand in 10 of its operating stores in Michigan and its marketing team has been busy behind the scenes developing a fulsome modern brand strategy that includes Red White & Bloom branded cannabidiol products that will elevate current verticals in fitness, beverages, wellness, pain management, men's grooming and pet care.
  • Brad Rogers, the chief executive officer of MichiCann, has been invited to be a keynote speaker at the prestigious, invite-only BrandWeek CMO conference in Palm Springs, being held from Nov. 3 to Nov. 6. He will be speaking about purpose-driven CBD and representing the only company in the cannabis space among other top brands in the U.S. that include Johnson & Johnson, Heineken, Sephora, and Target.

Production updates

MichiCann has been working closely with staff in Illinois for the past three months, whom have quickly adapted to a new crop and have been able to grow outstanding strains for live-resin extraction and whole flower.

The company wishes to thank its shareholders for their continued patience and support as it works to execute its strategy.

We seek Safe Harbor.

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