GrowBLOX Sciences, Inc. (GBLX) Signs Financing, Li
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Posted On: 06/15/2015 4:13:01 PM
GrowBLOX Sciences, Inc. (GBLX) Signs Financing, Licensing Agreements for Advancement in Nevada Cannabis Market
GrowBLOX Sciences has entered into a Note Purchase Agreement with Pacific Leaf Ventures, LP in which Pacific Leaf has agreed to make an installment loan to GrowBLOX of up to $1.75 million. According to an SEC filing, the financing provides the funding for GrowBLOX subsidiary GB Sciences Nevada, LLC to acquire and install an operating facility, equipment, and other tangible assets for the cultivation of cannabis and the extraction of oils and other constituents present in cannabis, in adherence to Nevada legal requirements.
GBS Nevada holds a provisional certificate from the Division of Public & Behavioral Health of the Nevada Department of Health and Human Services to operate an establishment to cultivate medical cannabis in Clark County Nevada. The certificate is considered provisional until the establishment is in compliance with applicable local government requirements and has received a state business operating license.
In a related development, GrowBLOX also entered into an exclusive perpetual license agreement to make use of Pacific Leaf’s intellectual property (IP) for the cultivation of cannabis and extraction of oils and other strains of cannabis that it has developed or acquired for the sole use of GBS Nevada in its operations within the state of Nevada. In consideration for the license, GrowBLOX has agreed to pay Pacific Leaf a 14 percent royalty for a period of five years, and a 7 percent royalty each year for five years thereafter.
As part of the Pacific Leaf license, GrowBLOX was also granted the exclusive perpetual right in Nevada to use certain proprietary techniques developed by Pacific Leaf for the extraction of oils from the product grown in the Nevada facility, using the extraction equipment financed by the proceeds of the Pacific Leaf loan. In connection therewith, GrowBLOX agreed to pay a royalty of $2 per extracted gram for a period of five years.
GrowBLOX said it believes that the rights to Pacific Leaf’s IP will give GBS Nevada a “significant competitive advantage in the Nevada cannabis market.” This advantage is complementary to GrowBLOX’s broader business strategy to integrate state-of-the-art technologies in plant biology, cultivation, and post-production processes to optimize safe, consistent medical cannabis.
For more information, visit www.gbsciences.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
GrowBLOX Sciences has entered into a Note Purchase Agreement with Pacific Leaf Ventures, LP in which Pacific Leaf has agreed to make an installment loan to GrowBLOX of up to $1.75 million. According to an SEC filing, the financing provides the funding for GrowBLOX subsidiary GB Sciences Nevada, LLC to acquire and install an operating facility, equipment, and other tangible assets for the cultivation of cannabis and the extraction of oils and other constituents present in cannabis, in adherence to Nevada legal requirements.
GBS Nevada holds a provisional certificate from the Division of Public & Behavioral Health of the Nevada Department of Health and Human Services to operate an establishment to cultivate medical cannabis in Clark County Nevada. The certificate is considered provisional until the establishment is in compliance with applicable local government requirements and has received a state business operating license.
In a related development, GrowBLOX also entered into an exclusive perpetual license agreement to make use of Pacific Leaf’s intellectual property (IP) for the cultivation of cannabis and extraction of oils and other strains of cannabis that it has developed or acquired for the sole use of GBS Nevada in its operations within the state of Nevada. In consideration for the license, GrowBLOX has agreed to pay Pacific Leaf a 14 percent royalty for a period of five years, and a 7 percent royalty each year for five years thereafter.
As part of the Pacific Leaf license, GrowBLOX was also granted the exclusive perpetual right in Nevada to use certain proprietary techniques developed by Pacific Leaf for the extraction of oils from the product grown in the Nevada facility, using the extraction equipment financed by the proceeds of the Pacific Leaf loan. In connection therewith, GrowBLOX agreed to pay a royalty of $2 per extracted gram for a period of five years.
GrowBLOX said it believes that the rights to Pacific Leaf’s IP will give GBS Nevada a “significant competitive advantage in the Nevada cannabis market.” This advantage is complementary to GrowBLOX’s broader business strategy to integrate state-of-the-art technologies in plant biology, cultivation, and post-production processes to optimize safe, consistent medical cannabis.
For more information, visit www.gbsciences.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
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