Goodness Growth Engages Grown Rogue To Improve Its Cannabis Cultivation Operations

Author: Vuk Zdinjak | May 25, 2023 10:07am

Goodness Growth Holdings, Inc. (OTCQX:GDNSF) (CSE:GDNS) and Grown Rogue International, Inc. (OTCPK:GRUSF) (CSE:GRIN) have entered into a strategic agreement whereby Grown Rogue will support Goodness Growth in the optimization of its cannabis flower products, with a particular focus on improving the quality and yield of top-grade “A” cannabis flower across its various operating markets, starting with Maryland and Minnesota.

Under the terms of the agreement, which expires on September 30, 2025, Goodness Growth will provide compensation to Grown Rogue for sustained consulting support, including input on systems and processes, and recommendations to improve Goodness Growth’s cultivation operations. Grown Rogue will be entitled to receive additional incentive compensation if its services result in improved cash flow performance as compared to Goodness Growth’s baseline expectations over the term of the agreement. Grown Rogue’s cooperation in the agreement will be on an exclusive basis to Goodness Growth within the markets in which Goodness Growth operates.

In addition, Goodness Growth will issue 10 million warrants to purchase subordinate voting shares of Goodness Growth to Grown Rogue, with a strike price equal to a 25% premium to the 10-day volume weighted average price (“VWAP”) of Goodness Growth’s subordinate voting shares prior to the effective date of the agreement. Similarly, Grown Rogue will issue 8.5 million warrants to purchase subordinate voting shares of Grown Rogue to Goodness Growth, with a strike price equal to a 25% premium to the 10-day VWAP of Grown Rogue’s subordinate voting shares prior to the effective date of the agreement. The parties intend to issue the warrants within 60 days.

Photo by Richard T on Unsplash

Posted In: CSE:GDNS CSE:GRIN GDNSF GRUSF