CannaRoyalty provides an update on Rich Extracts
Ottawa, Canada – November 9, 2017 – CannaRoyalty Corp. (CSE: CRZ) (OTCQX: CNNRF) (“CannaRoyalty” or the “Company”), a fully integrated, active investor and operator in the legal cannabis industry today provided an update on Rich Extracts (“RE”). As disclosed in the Company’s last financial statements, a lawsuit was previously filed against RE by CURA, a raw materials supplier for payment of debts owing. CannaRoyalty successfully negotiated a settlement agreement between the two parties, but RE was subsequently unable to successfully deliver on the terms of the settlement.
The Company was informed today that Mr. R. Wilkinson, the principal of Rich Extracts, was arrested in Nebraska earlier this week, for possession of marijuana with intent to distribute. The possession and distribution of marijuana are illegal in Nebraska. This development has accelerated the Company’s efforts to enforce on its security interest in Rich Extracts and remove Mr. Wilkinson from the Rich Extracts extraction business. Following these recent developments, CannaRoyalty has alerted the Oregon Liquor Control Commission (OLCC). CannaRoyalty intends to work with the OLCC and relevant state authorities to take all available legal action to realize its security over Rich Extracts and its extraction facility.
As previously announced CannaRoyalty has advanced approximately USD$2.75 million in debt to Rich Extracts, and CannaRoyalty has the right to convert USD$2.15 million of this debt into a 30% royalty stream on Rich Extracts’ gross sales in perpetuity.
CannaRoyalty is an active investor and operator in the legal cannabis sector. Our focus is building and supporting a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Our management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt, licensing agreements and its own branded portfolio.
For further inquiries, please contact:
Marc Lustig, CEO
Jonathan Ross, CFA
LodeRock Advisors Inc.