$GPFT Grapefruit USA, Inc. Issues Further Update C

$GPFT Grapefruit USA, Inc. Issues Further Update Concerning Formation of Joint Venture with Canadian Partner to Distribute Hourglass Products; Possible Acquisition

https://finance.yahoo.com/news/grapefruit-usa...00858.html

LOS ANGELES and DESERT HOT SPRINGS, Calif., May 20, 2021 (GLOBE NEWSWIRE) -- via InvestorWire – Grapefruit USA, Inc. (OTCQB: GPFT) (“Grapefruit” or the “Company”), a premiere, fully licensed California-based cannabis company, is further updating its March 1, 2021, announcement that the Company had been approached by a Canadian cannabis company to enter into discussions concerning a potential acquisition transaction, that the discussions evolved to include development of a memorandum of understanding (“MOU”) setting forth terms under which the parties could enter into a joint venture to jointly manufacture, distribute and market Grapefruit’s products, including, but not limited to, Grapefruit’s patented disruptive Hourglass™ THC/Cannabinoid time-release delivery cream throughout Canada and that in February the Company signed a Memorandum of Understanding (the “MOU”) with the Canadian partner which set forth the general terms of their agreement to form a new joint venture corporation to manufacture and distribute Grapefruit’s patented, disruptive Hourglass THC/ cannabinoid products, throughout the Commonwealth of Canada including on Indian Reservations and Canadian First Nation Lands, and its March 8, 2021, announcement that the Canadian Partner noticed a special shareholder’s meeting to consider the proposed joint venture and other corporate matters.

Subsequent to March 8, 2021, the Canadian partner’s shareholder’s meeting was delayed and ended up being held on April 29, 2021. At that meeting the Canadian partner’s shareholders elected five directors and approved appointment of a new CEO and CFO. The Canadian partner’s shareholders also approved the acquisition of a Canadian based hemp cultivator. Since the aforementioned corporate actions triggered a change in control of the Canadian partner, the corporate actions require acceptance for filing by the Canadian Stock Exchange (the “CSE”) which is pending. Discussions between the Company and the Canadian Partner have continued during the course of these activities, however, execution of a 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.

Bradley J. Yourist, Grapefruit CEO, commented, “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. 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. 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.”