Mergers & Acquisitions ·
Grown Rogue International Inc. entered into definitive agreements to facilitate its planned acquisition of PharmaCann…
GRUSFGrown Rogue International Inc.
Grown Rogue International Inc. entered into definitive agreements to facilitate its planned acquisition of PharmaCann Inc.'s New York license and assets through a newly formed joint venture, Grown Rogue New York LLC (GRNY). The Company holds a 51% interest in GRNY, while a capital partner invested $10 million for a 49% preferred equity stake. This investment includes an option to convert into approximately 18.2 million subordinate voting shares, representing roughly 7% dilution at current prices. Additionally, the capital partner committed up to $5 million via a drawable term loan and received 300,000 shares as a commitment fee. GRNY has assumed operational control of PCNY's four dispensaries and Hamptonburgh cultivation facility through interim agreements, including a secured loan of up to $9 million to support working capital and production ramp-up during the transition period pending regulatory approval.