Business
Grapefruit Announces Entry into Letter of Intent with Dogwood Management, Inc. Group to Target, Acquire and Manage California Licensed Retail Cannabis Dispensaries
Grapefruit Announces Entry into Letter of Intent with Dogwood Management, Inc. Group to Target, Acquire and Manage California Licensed Retail Cannabis Dispensaries.
About this update from Grapefruit Usa Inc.
[{"type":"text","content":"\nWestwood, Los Angeles, California, July 18, 2019 (GLOBE NEWSWIRE) -- Imaging3, Inc. (OTCQB: IGNG), (“IGNG” or “Imaging3”) today announced that its wholly owned subsidiary, Grapefruit Boulevard Investments, Inc. (“Grapefruit” or the “Company”) has entered into a letter of intent (‘LOI”) with Dogwood Management Group, Inc. (“Dogwood”) (collectively the “Parties”).\n The non-binding letter of intent dated as of June 12, 2019 outlines the Parties’ plan for Grapefruit to acquire, and for Dogwood to manage, California licensed and fully compliant retail cannabis dispensaries throughout California which meet the Parties regulatory, operational and financial results requirements. The plan constitutes one avenue for Grapefruit to explore to achieve the retail dispensary acquisition aspect of Grapefruit’s comprehensive corporate goal to become a fully vertically integrated seed to sale cannabis and CBD product company. Under the terms of the LOI, Dogwood will have primary responsibility to identify and conduct due diligence on prospective acquisition candidates. Grapefruit will have primary responsibility to structure the acquisition of any legal dispensary by cash or IGNG stock or some combination thereof and to arrange for funding of any such legal dispensary acquisitions. The Parties acknowledge that each acquisition will be negotiated, priced and managed on a case by case basis. Post-acquisition, Dogwood will manage any acquired legal dispensaries in exchange for receipt of 30% of the net operating income of such dispensary.  Grapefruit’s CEO, Bradley J. Yourist, stated: “We continue to press purposefully forward toward our ultimate goal of vertical integration by implementing this initial program to build a network of fully compliant, legal dispensaries by entering into this arrangement with Dogwood which eliminates the necessity of building an in house acquisition staff and dispensary management team and thereby significantly accelerates our legal retail dispensary acquisition program. Dogwood’s CEO Steely Inoue and I, and our respective management teams, will work closely together over the coming months to identify, acquire and successfully manage various retail cannabis dispensaries in both Northern and Southern...