IGNG = = NEWS Grapefruit Boulevard Investments Receives Its Provisional Distribution License from the State of California Department of Public Health
Reverse Acquisition of Imaging3 Nearing Completion
Burbank, CA, May 20, 2019 (GLOBE NEWSWIRE) -- Imaging3, Inc. (OTCQB:IGNG), (“IGNG” or the “Company”), a development stage company focused on the introduction of disruptive technologies in the medical imaging industry, is further updating its prior announcements regarding its reverse acquisition (the “Acquisition”) by Grapefruit Boulevard Investments, Inc. (“Grapefruit” or “GBI”) a privately held Los Angeles based cannabis company and simultaneous vending of its imaging business into a privately held corporation which will be partially owned by post - Acquisition IGNG .
On May 14, 2019, the California Bureau of Cannabis Control approved Grapefruit for its provisional Adult-Use and Medicinal Cannabis Distribution Licensure after meeting the compliance requirements as mandated by the State of California. In response to this news, Bradley Yourist, Chief Executive Officer, stated: “Grapefruit has effectively moved from temporary licensure passing yet another barrier to achieving the certainty we need to continue to expand into the California cannabis market. Holding a temporary license does not obligate the Bureau to issue a non-temporary license nor does it create a vested right in the granting of a subsequent non-temporary license. Now that we have our provisional distribution licensure, rather than temporary licensure, Grapefruit is well positioned for more rapid growth because we can enter into longer term distribution agreements with licensed cultivators and fellow manufacturers. This new license will allow Grapefruit to capture a more consistent revenue stream in the licensed cannabis market.”
“Furthermore, Grapefruit and its management have sharpened their focus on the ever-expanding CBD hemp compliant market here and abroad. To that end, we are planning several unique CBD Hemp products to be brought to market by a wholly owned subsidiary of Grapefruit. Our team understands the need to rapidly enter the CBD rich hemp space in a well-considered and pragmatic manner while always remaining in compliance with the regulations of the 2018 Farm Act.”
John Hollister, Imaging3 CEO added, “We are assiduously working through the various contracts required to wrap up GBI’s acquisition of IGNG. The tripartite nature of the transaction necessarily including the Investor’s securities purchase agreement and related documents has demanded more time than originally anticipated. Nevertheless we are quite optimistic that the deal will close this week. In the meantime GBI’s efforts to reach its goal continue apace as evidenced by the issuance of an enhanced California license to GBI.”
Potential investors in IGNG’s common shares are cautioned that there can be no assurances that the reverse acquisition of IGNG by GBI will ever be closed and that even if it is, there can be no assurance that the Company will thereafter be able to obtain the financing necessary to achieve its articulated goals and further that even if such financing is obtained that it will be sufficient for the Company to achieve its ultimate goals or to even remain in business.
About Imaging3, Inc.
Imaging3, Inc., founded in 1993, has developed a patented medical imaging technology, called the Dominion SmartScan™, that produces 3D X-ray images, effectively in real time. The SmartScan technology has the potential to allow healthcare professionals to perform diagnostic