Business
Item 9 Labs Corp. Secures $7.7 million for Geographic Expansion Plans
Item 9 Labs Corp. Secures $7.7 million for Geographic Expansion Plans.
About this update from Item 9 Labs Corp.
[{"type":"text","content":"\nSCOTTSDALE, Ariz., Nov. 20, 2018 (GLOBE NEWSWIRE) -- Item 9 Labs Corp. (OTC: INLB) (Item 9 Labs or the Company), a leading developer and manufacturer of innovative cannabis products and proprietary delivery platforms, this week announced it has entered into a strategic partnership with VIRIDIS Group I9 Capital LLC (VIRIDIS), an Arizona-based investment company specializing in real estate and environmentally sustainable development.\n The partnership involves a USD $7.7 million investment by VIRIDIS Group, providing capital for the planned geographic expansion of Item 9 Labs, including medical cannabis cultivation and processing. The investment also supports the continued development of the Company’s enhanced cannabinoid delivery system, the first cannabis market medicated nasal delivery device administering cannabinoid specific dosing. The Company and VIRIDIS Group entered into a Loan and Revenue Participation Agreement on September 11, 2018. VIRIDIS Group agreed to make a secured loan USD $2.7 million represented by two separate notes: one for the construction and enhancement of the Company’s Arizona property, and the other for proposed ventures in Nevada. On October 17, 2018, the two companies entered into an equity Subscription Agreement. VIRIDIS Group agreed to purchase 100,000,000 (pre-split), or respectively 5,000,000 (post 1:20 reverse split) restricted common shares of Item 9 Labs for USD $5 million.  Item 9 Labs will use VIRIDIS Group transaction proceeds to expand its manufacturing and revenues through the acquisition of real estate in Arizona and Nevada, as well as product development and general corporate purposes. “Item 9 Labs is ushering in a new era of wellness by developing innovative and comfortable health solutions for the modern cannabis consumer,” said Bryce Skalla, Co-Founder and CEO of Item 9 Labs. “We are cultivating quality-driven, organic products for whole body health, and seamlessly merging medical cannabis into a lifestyle.” Item 9 Labs is well-positioned to benefit from continued growth in the Cannabis sector due to changing regulations and the growing demands of a global industry. “At VIRIDIS Group, we pride ourselves on our forward-thinking and cutting-edge investment strategies and we view our investment in Item 9 as an extremely valuable one, ...