TORONTO, Nov. 19, 2020 – Cannabis Growth Opportunity Corporation (“CGOC“, or the “Company“) (CSE: CGOC), a cannabis focused investment corporation with both public and private cannabis holdings, announced today that the Company has amended its operating credit facility with Bhang Inc. (“Bhang“).

On November 17, 2020, the Company and Bhang amended the existing operating credit facility which was entered into on July 17, 2020 (the “Credit Facility“) whereby CGOC is to provide up to the aggregate principal amount of $1,500,000 (previously $1,000,000) to Bhang for general working capital needs. The Credit Facility bears interest at a rate of 8% per annum on all advances and will mature on July 17, 2023. The Credit Facility is secured by a charge on all of the current and future assets, undertakings and properties of Bhang and its subsidiaries pursuant to general security agreements. At the option of CGOC, all advances and accrued interest on the Credit Facility are convertible into subordinate voting shares of Bhang (“Subordinate Voting Shares“) at a price of $0.15 per Subordinate Voting Share. As of the date hereof, CGOC has advanced a total of $1,350,000 under the Credit Facility.

Early Warning Disclosure Pursuant to National Instrument 62-103

 
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Prior to amending the Credit Facility, the Company beneficially owns or controls 10,000 multiple voting shares of Bhang (“Multiple Voting Shares“) representing approximately 21.15% of the issued and outstanding Multiple Voting Shares on a non-diluted basis and a partially diluted basis.

Prior to amending the Credit Facility, the Company beneficially owns or controls 37,544,833 Subordinate Voting Shares of Bhang, 15,500,000 warrants to acquire Subordinate Voting Shares (the “Warrants“), 10,000 Multiple Voting Shares and the Credit Facility representing approximately 34.81% of the issued and outstanding Subordinate Voting Shares on a non-diluted basis, and approximately 50.35% of the issued and outstanding Subordinate Voting Shares on a partially diluted basis, assuming the exercise of all of the Warrants held by the Company, conversion of the maximum advance and interest payable on the Credit Facility (prior to the amendment) and the conversion of all of the Multiple Voting Shares held by the Company.

As of the date hereof, after amending the Credit Facility, the Company beneficially owns or controls 37,544,833 Subordinate Voting Shares of Bhang, 15,500,000 Warrants representing approximately 34.81% of the issued and outstanding Subordinate Voting Shares on a non-diluted basis, and approximately 51.73% of the issued and outstanding Subordinate Voting Shares on a partially diluted basis, assuming the exercise of all of the Warrants held by the Company, conversion of the maximum advance and interest payable on the amended Credit Facility and the conversion of all of the Multiple Voting Shares held by the Company.

The Subordinate Voting Shares of Bhang were acquired for investment purposes. While Company currently has no plans or intentions with respect to its securities of Bhang, the Company may from time to time acquire additional securities of Bhang, may sell all or a portion of its securities of Bhang or may continue to hold the Subordinate Voting Shares, Multiple Voting Shares, Warrants, the Credit Facility or other securities of Bhang, depending on market conditions, the Company’s view of Bhang’s prospects, other investment opportunities and other factors considered relevant to the Company.

A copy of the early warning report to be filed by the Company will be available under Bhang’s issuer profile on SEDAR at www.sedar.com or by contacting Paul Andersen, CEO at 416.047.0464. The Company’s head office is located at 240 Richmond Street West, Suite 4164, Toronto, Ontario, M5V 1V6.

About CGOC

CGOC is an investment corporation that offers unique global exposure to the emerging global cannabis sector. CGOC’s main objective is to provide shareholders long-term total return through its actively managed portfolio of securities, both public and private, operating in, or that derive a portion of their revenue or earnings from products or services related to the cannabis industry.

Forward-looking Statements

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the Company’s business plan and matters relating thereto, and risks associated with the Company’s investments and financial objectives, as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company’s public filings on SEDAR. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

SOURCE Cannabis Growth Opportunity Corporation

CGOC Amends Bhang Operating Credit Facility

For further information: please contact Cannabis Growth Opportunity Corporation: Paul Andersen, CEO, Tel: (416) 947-0464, Website – www.cgocorp.com, Investor Relations – Email: [email protected]



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