VANCOUVER, British Columbia, August 21, 2020 – Organic Flower Investments Group Inc. (CSE: SOW)(FWB: 2K6)(OTC: QILFF) (“Organic Flower” or the “Company”) is pleased to announce that it has entered into a letter of intent (the “Letter of Intent”), dated August 12, 2020, to acquire up to a 13% equity interest in a U.S.-based company, which owns certain hydrogen assets with global applications for a purchase price of CA$4,500,000 payable in cash. Under the terms of the arms-length acquisition, the Company also has an option (the “Option”) to increase its ownership to 90% of the assets, which primarily consist of small footprint, environmentally friendly IP for the modularized and lowest tier production cost of hydrogen.
Having successfully distributed its interest in AgraFlora Organics International Inc. (“AgraFlora”) to its shareholders, Organic Flower continues to be opportunistic in evaluating opportunities across all sectors both as an investor and operator, minority shareholder, or sole shareholder, as per its investment policy disclosed on October 1, 2018. As of the date of this press release, the Company has renewed the investment policy to include the renewable energy sector as a potential continuing area of focus for the Company. The renewed investment policy is available for review on the Company‘s website at (https://cleanpower.capital/).
The Company now has 9 investments in a variety of sectors having successfully held CA$120 million in investments during the past fiscal year and returned capital to its holders through the distribution of its AgraFlora interest.
Completion of the investment contemplated by the Letter of Intent, including the acquisition of an equity interest in the U.S.-based company, remain subject to a number of conditions, including the successful completion of due diligence, receipt of any required regulatory approvals and the negotiation of definitive documentation which is expected to include warranties, representations, covenants, terms and conditions which are customary for transactions of this nature. No investment can be completed until these conditions have been satisfied. The contemplated investment is not expected to constitute a fundamental change for the Company within the meaning of the policies of the Canadian Securities Exchange.
The Company confirms that there have been no material developments, other than those disclosed through news releases and Form 7 monthly progress reports filed on the Company’s profile with the Canadian Securities Exchange. Additionally, the Company advises that management and other insiders of the Company are currently subject to a trading blackout policy, in compliance with applicable securities laws and regulations.
ABOUT ORGANIC FLOWER INVESTMENTS
Organic Flower is an investment company, that specializes in investing into private and public companies opportunistically that may be engaged in a variety of industries, with a current focus in the health and renewable energy industries. In particular, the investment mandate is focused on high return investment opportunities, the ability to achieve a reasonable rate of capital appreciation and to seek liquidity in our investments.
ON BEHALF OF THE ORGANIC FLOWER INVESTMENTS GROUP INC. BOARD OF DIRECTORS
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Notice Regarding Forward Looking Information:
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: political changes in Canada and internationally, future legislative and regulatory developments involving cannabis in Canada and internationally, AgraFlora’s ability to secure distribution channels in international jurisdictions, competition and other risks affecting AgraFlora in particular and the cannabis industry generally. Without limiting the generality of the foregoing, the forward-looking statements herein include, among other things, the ability to develop the Delta Greenhouse Complex and the successful integration of Organic Flower’s unique domestic downstream asset portfolio under the AgraFlora banner.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.