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Grapefruit USA Inc. (GPFT) Provides Status Update of Joint Venture, Possible Acquisition
June 22, 2021

Grapefruit USA Inc. (GPFT) Provides Status Update of Joint Venture, Possible Acquisition

  • Earlier this year, Grapefruit was approached by a Canadian cannabis company about a potential acquisition
  • A series of events have delayed the process
  • Final decisions, details should be discussed in the next 30–60 days

Grapefruit USA (OTCQB: GPFT), a premiere, fully licensed, California-based cannabis company, is providing clarification regarding its previously announced potential acquisition transaction by a Canadian cannabis company (https://ibn.fm/mymt2). 

Earlier this year, Grapefruit announces that it had been approached by a Canadian cannabis company to enter into discussions concerning a potential acquisition transaction (https://ibn.fm/LShI3). At the time, Grapefruit CEO Bradley J. Yourist noted that “Grapefruit is not surprised to be approached concerning a potential acquisition, in light of the company’s recent disclosure concerning its 714% year-over-year revenue increase; the public reaction to the company’s patented, disruptive Hourglass(TM) THC/cannabinoid delivery cream; and recent announcements by U.S. Senate Majority Leader Chuck Schumer concerning prioritization of the federal legalization of cannabis by de-scheduling THC.”

Following that initial announcement, Grapefruit issued a series of follow-up announcements noting further progress of the potential acquisition, including the development of a memorandum of understanding (“MOU”) that sets forth terms under which the parties could enter into a joint venture to jointly manufacture, distribute and market Grapefruit’s products (https://ibn.fm/o39cc) as well as an announcement that the Canadian partner had scheduled a special shareholder’s meeting to consider the proposed joint venture and other corporate matters (https://ibn.fm/lT09w). 

At the shareholder meeting, the Canadian partner’s shareholders elected new directors and approved the acquisition of a Canadian-based hemp cultivator. Those actions triggered a change in control of the Canadian partner; as a result, the company had to submit new filings to the Canadian Stock Exchange and the formal joint venture agreement and further acquisition discussions were postponed pending acceptance of the filing by the CSE, which the Canadian partner expects in the very near future. 

“While Grapefruit was, of course, disappointed by the delays occasioned by our counterpart’s corporate action (which were in progress before our discussions commenced), we believe it was in the best long-term interests of Grapefruit and its shareholders to accept a pause while the Canadian partner concluded its corporate actions,” Yourist said. “Now we move forward. 

“As we have stated before, a joint venture may precede without precluding an acquisition. Execution of the MOU moved the entire process forward as we now more clearly understand each other’s overall goals and priorities as well as the capital requirements and legal, regulatory and logistical challenges of finalizing a joint venture and/or an acquisition,” Yourist continued. “We expect to bring the process forward to the point of making a decision in the next 30–60 days. Once again, that being said, we wish to emphasize that the discussions reported here, although substantive and largely positive, remain preliminary in nature and may be terminated at any time. Grapefruit will update the public as necessary on any material joint venture or acquisition developments as events proceed.”

Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products in the Golden State. The company’s extraction laboratory and manufacturing and distribution facilities are located in the industry-recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Road, approximately 14 miles north of downtown Palm Springs. 

Grapefruit’s flagship product — Hourglass time-release delivery cream — features cutting-edge science and technology that solves the age-old problem of THC and other cannabinoids not being easily absorbed through the skin. The topical cream uses patented microsized particles to slowly deliver THC and a wide range of cannabinoids through skin topical administration. No other topical cream product on the market provides users with the holistic benefits of the range of cannabinoids found in Hourglass.

To find out more about the company and its game-changing Hourglass time-release cannabinoid delivery cream, please visit www.GrapefruitBlvd.com.

NOTE TO INVESTORS: The latest news and updates relating to GPFT are available in the company’s newsroom at https://ibn.fm/GPFT

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