Grown Rogue International Inc. began trading today on the Canadian Securities
Exchange (CSE) under the ticker symbol “GRIN”. The listing follows the company’s previously announced reverse takeover (RTO) of a Canadian public company Novicius Corp.
The company raised approximately CAD $6.5 million through brokered and non-brokered private placements. Grown Rogue is only located in Oregon at this time. The company says it expects to enter the California market by the end of the year, but that doesn’t include cultivation or production of any sort.
Grown Rogue has signed an LOI for a joint venture in northern California. The company said its focus in California is to start with distribution, move into extraction (manufacturing), and ultimately retail. In fact, the filing states, “Grown Rogue believes California will ultimately see similar price compression as other recreational states and therefore does not anticipate constructing or operating cultivation facilities in California for several years. Grown Rogue does not currently hold any licenses to operate its business in California, and intends to obtain such required licenses prior to entering the California market.”
“Grown Rogue is a trusted brand with a proven track record for delivering reliable and consistent experiences for cannabis consumers,” said Obie Strickler, CEO and co-founder of Grown Rogue. “With average consecutive monthly revenue growth of 28% for 2018, we have begun the process to expand operations and jurisdictions to meet increased demand. The public listing of the Company’s common shares on the CSE is an important milestone in the development of the Company, as we continue to accelerate our expansion as a national cannabis brand.”
So far this year in three quarters for fiscal year 2018, Grown Rogue has reported $1.1 million in revenues and $4.9 million in net losses. As of July 31, 2018, Grown Rogue had cash of $100,685 and a working capital deficit of $876,637.
Strickler owns 39% of the company and while he has lent the company thousands of dollars numerous fees have been paid to individuals and companies related to Strickler. Grown Rogue pays Strickler $5,000 per month in rent for the Trails End Property and 2.5% of gross sales achieved at the property, all payable in cash. The rent owed by GRU Properties to Mr. Strickler is paid in cash at comparable market rates.