Business
Green Rise Foods Completes 16-Acre Greenhouse Acquisition
Toronto, Ontario--(Newsfile Corp. - July 4, 2022) - Green Rise Foods Inc. (TSXV: GRF) ("Green ...
About this update from Green Rise Foods Inc
[{"type":"text","content":"Green Rise Foods Completes 16-Acre Greenhouse AcquisitionToronto, Ontario--(Newsfile Corp. - July 4, 2022) - Green Rise Foods Inc. (TSXV: GRF) (\"Green Rise\" or the \"Company\") is pleased to announce that it has completed its acquisition through its wholly-owned subsidiary, Bull Market Farms Inc., of a 16-acre greenhouse range (\"GR3\") located in Kingsville, Ontario, for cash consideration of $15 million (the \"Acquisition\"). The greenhouse range was previously owned by 2073834 Ontario Limited (\"Vendor\"), a company principally owned and controlled by Adam Suder, the Chief Growth Officer of Green Rise.\"We are excited to add a high-yielding greenhouse currently producing and packing mini peppers under fixed contract pricing. The addition of this product sku further diversifies our product base allowing the Company to meet the increasing demand for specialty products,\" said Vincent Narang, the Company's Chief Executive Officer. With this Acquisition the Company has added 11-acres of glass and 5-acres of double poly greenhouses to its total portfolio of 89-acres. The Company has also increased the number of acres cultivated under fixed contract pricing from 36 acres to 52 acres, or 70% of its total managed acreage (up from 62% as compared to the start of the 2022 crop season and 31% from the 2021 crop season). The strategy of fixed contract pricing and the Company's continued focus on managing expenses is critical to providing stable and consistent cash flows.As the Vendor is principally owned and controlled by Mr. Suder, the Chief Growth Officer of Green Rise, the Acquisition was considered a \"related party transaction\" under Multilateral Instrument 61-101 - Protection of Minority Holders in Special Transactions (\"MI 61-101\") and, as such, the Acquisition was subject to the formal valuation and disinterested shareholder approval requirements of MI 61-101, unless an exemption is relied on. Accordingly, as the Company's common shares are listed on the TSX Venture Exchange, the Company relied on the exemption from the formal valuation requirements set forth in Section 5.5(b) of MI 61-10. No exemption from the disinterested shareholder approval requirements of MI 61-101 were available to Green Rise, and therefore, at the Company's annual general meeting held on June 29, 2022, the Company sought and received disinterested sh...