Debra BorchardtGrown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) has increased ownership in its Michigan operations of Golden Harvests.
The move bumped Grown Rogue’s interest in Golden Harvests from 52.2% to 80% via two transactions valued at $2.8 million. The deal consisted of $200,000 paid in cash and $2.6 million paid through 4-year sellers’ notes. The deal values Golden Harvests at $10 million.
“Michigan is such an important asset to our company because it was the first market we proved we could migrate our operational excellence from Oregon to additional markets,” said Obie Strickler, CEO of Grown Rogue. “Michigan has been a tremendous market for us, and we are thrilled to own a larger piece of this strong business. Michigan still has approximately 25,000 square feet of facility that can be built out, and we are in discussions to expand and optimize the additional capacity.”
Canopy Management LLC, which is 87% indirectly owned by Grown Rogue, holds a 60% interest in Golden Harvests. Grown Rogue bought the remaining minority interest in Canopy for $800,000, which included a 20% down payment in cash and monthly payments for 4 years with an annual interest rate of 5.2%.
The remaining 20% of Golden Harvests is owned by Dave Pleitner, an insider of the company, and certain company directors who own 8% of the interest in Canopy.
Golden Harvests controls its Michigan operations, operating out of an 80,000 square foot facility, which has approximately 15,000 square feet of flowering bench space.
Illinois
In March, Grown Rogue formed a joint venture with EBC Ventures to focus on cultivating and manufacturing cannabis products to meet growing demand in Illinois. This marked Grown Rogue’s first expansion beyond New Jersey.
The joint venture, Rogue EBC, acquired CannEquality, LLC, which held a craft grower’s license from the Illinois Department of Agriculture.
