Very impressive news on ORGH today which will bring $50 million to the company and dramatically open up new opportunities in the emerging legal cannabis marketplace.
Note management comments from the announcement:
“Just before the Thanksgiving holiday, I received approval from our Board of Directors to move forward with a binding agreement, that would transfer controlling interest of OrgHarvest to First Seed Farms, Inc. and First Seed International, Inc. – the controlling shareholders of Zona Energy, Inc. – for $50 million,” stated Frank Celecia, CEO of OrgHarvest. “We believe this could be a major opportunity for OrgHarvest as the ultimate relationship would be with Zona Energy, who is set to do some very interesting things within the cannabis and hemp marketplace.”
The acquisition will be made in an all stock purchase, where controlling interest of OrgHarvest is being transferred to First Seed Farms, Inc. and First Seed International, Inc. for $50M in their Zona Energy, Inc. common stock holdings. Management suggests that with the support of Zona Energy and its principals, there would potentially be greater interest in ramping up funding to the Company.
While the closing is scheduled for month-end, December 2019, it is highly anticipated that the transaction will come to fruition timely. This would inevitably fast track the potential of the Company’s business model and should position OrgHarvest to become a major player within the cannabis and hemp industries, as a U.S. based cultivation operation.
Mr. Celecia concluded, “We are pleased that Zona Energy’s principals identified OrgHarvest as the most suitable Company for them to pursue their cannabis and hemp endeavors with. We will work diligently to make this venture a huge success and will continue to provide shareholders with updates pertaining to this transaction and its overall value proposition.”
