Replies to post #701 on Green Growth Brands Inc (GGBXF)

[pedro12]

if this true, there is the element of trust that's gone now

[ignatiusrielly35]

It is most likely that the acquisitions were closed already using cash reserves and the offering proceeds are being used to replenish the bank account. Just a matter of timing. If I plan to buy a car with cash and I don’t have time to get a loan first I could plan to get a loan after the fact. Then I deplete my bank account and then take out the loan to replenish it. The purpose of the planned loan was always to buy the car with it. Doesn’t matter that the events occurred out of order.

[alabama96]

First and foremost, on September 18, 2018 the company announced that it completed the acquisition of Nevada Organic Remedies.

Prior to the Business Combination, on September 4, 2018, Xanthic acquired 95% of the outstanding membership
interest of NOR (the “NOR Agreement”) through GGB Nevada LLC, a wholly-owned subsidiary of the Company.

The aggregate purchase consideration
is comprised of $53,912,500 payable in cash in the amount of $32,347,500 and a promissory note in the amount of
$21,565,000, with the balance of $2,837,500, or 5%, payable in common shares.


Maybe the final payment was changed to cash instead of shares. Who knows. I am guessing the next financials will clear this up.

" 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."

Again, no idea what or if anything has been modified. Upon closing we should know more. It is hard for me to imagine that they would lie about how the funds are to be used. The truth would eventually come out.

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.

I would disagree with this assessment. First off the PR states "The net proceeds of the Debenture Financing will be used for general corporate and working capital purposes."

Secondly, how can someone say there are no major expenditures? I am sure it is quite costly opening up the Mall Kiosks, not to mention the rent they have to pay at the mall locations. That could eat through 45 million quite fast.

As for the 5 million loan, it is possible they are using those funds for an acquisition yet to be announced.

[alabama96]

“There was a mere two week time frame between these dates, and no other major expenditures during this time period.”

I think the opening of the mall kiosks could be considered a major expenditure.

[alabama96]

“There was a mere two week time frame between these dates, and no other major expenditures during this time period.”

I think the opening of the mall kiosks could be considered a major expenditure.