Green Growth Brands Inc (GGBXF)

[pedro12]

to Alabama96: again these acquisitions were supposed to be paid off, and this is from the company own admission. The money is being used for something else, read this and tell me otherwise, it's long but read it anyway please, I'll post link at the end :


However, there’s some issues with the above stated purposes of the proceeds. First and foremost, on September 18, 2018 the company announced that it completed the acquisition of Nevada Organic Remedies. Second, the cash purchase price of Henderson Organic Remedies was already loaned to the firm as per the latest financials posted by Green Growth Brands on May 29, for the period ended March 31, 2019. The only thing stopping the Henderson acquisition from closing, based on previous company filings, is the formal exercise of the warrants that were issued in connection with the option. No further cash should be required to close the transaction.

Thirdly, the cash purchase price of Spring Oaks, which is a Florida licensee, consists of US$26.15 million, out of the total US$54.65 million price tag. This purchase should have been satisfied under the US$45.5 million raise conducted on May 17 through the aforementioned convertible debentures, as the acquisition of Spring Oak Greenhouses LLC was announced on June 4, 2019. There was a mere two week time frame between these dates, and no other major expenditures during this time period. Furthermore, a US$5 million loan was provided to GGB by MXY Holdings LLC as part of the all share acquisition announced on July 9, 2019 of the multi state operator. The funds from this loan were stated to be used to “fund certain pending acquisitions.”

Based on this information, it results in the current C$50 million financing likely being used for purpose (iv), the Company’s ongoing capital expenditures and general corporate purposes. A large portion of which, consists of the C$39 million promissory note issued on May 16, 2019 to complete the buy back of 27.3 million shares of the company at a price of $3.26 per share.

http://thedeepdive.ca/green-growth-brands-conducts-raise-after-completing-share-buyback/