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World Class investment acquires $11.5M HydRx debenture

2020-07-29 07:21 ET - News Release

An anonymous director reports


A company in which World Class Extractions Inc. holds a 50-per-cent equity interest, Cobra Ventures Inc., has entered into an agreement to acquire a senior secured convertible debenture of HydRx Farms Ltd. operating as Scientus Pharma in the principal amount of $11.5-million, plus accrued and unpaid interest and charges, from a leading Canadian licensed producer, subject to certain closing conditions. Cobra is purchasing the debenture for $5-million; closing is expected to occur within 60 days. The debenture is secured against the assets of HydRx. HydRx is currently in default of its obligations under the debenture.

First Republic Holdings Corp. (FRHC) holds a 50-per-cent equity interest in Cobra. FRHC is the investment holding company of Richard Goldstein and his family. FRHC is a shareholder of First Republic Capital Corp. (FRCC). FRCC is not involved in the acquisition of the debenture.

HydRx Farms operating as Scientus Pharma -- description of its business

HydRx owns and operates a 45,000-square-foot manufacturing and distribution facility in Whitby, Ont., built to GMP (good manufacturing practice) and GPP (good production practice) standards. HydRx holds numerous licences issued by Health Canada under the Cannabis Act to cultivate, produce and sell cannabis products, including the extraction of cannabis resin for use in formulations including cannabinoid-based oils, capsules and other derivative products. HydRx also holds a cannabis drug licence and is a licensed dealer under the Narcotics Control Act. HydRx is one of a limited number of Canadian licensees authorized to conduct research and development and fully handle cannabinoid products with the ability to wholesale, buy, process and sell cannabinoid derivatives, from and to other producers licensed under the Cannabis Act, as well as to international markets.

About World Class Extractions Inc.

World Class is an innovation-driven company with a principal focus on the rapidly evolving cannabis and hemp industries. Through its subsidiaries, Soma Labs Scientific Inc. and Greenmantle Products Inc., World Class deploys and manages custom-built extraction centres utilizing its custom systems, technology and processes to efficiently produce high-quality cannabis and hemp concentrates and end-products.

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