EVI Global Group Developments Corp. Announces the Signing of a Non-Binding Letter of Intent with Borganic Consulting Inc. and Non-Brokered Private Placement of Units
Vancouver, British Columbia--(Newsfile Corp. - September 6, 2018) - EVI Global Group Developments Corp. (CSE: EVI) ("EVI" or the "Company") is pleased to announce the signing of a non-binding letter of intent ("LOI") with Borganic Consulting Inc. ("Borganic"), which is focused on the commercial extraction of cannabidiol ("CBD") from industrial hemp. Borganic has engineered a proprietary commercial scale extraction technology that is more cost efficient than other traditional extraction processes. Borganic has also secured an exclusive joint venture partnership with UK based DragonFly Biosciences, LLC ("DragonFly") to build a CBD extraction facility to service the European Union ("EU"). DragonFly's 2018 harvest of 420 hectares of CBD rich hemp is expected to produce a minimum of 4.5 million grams of CBD. The extraction facility has the capability to produce over 18 million grams of CBD annually making it one of the largest refineries of CBD in Europe. The Company has also received multiple enquiries from other EU based hemp producers to extract CBD for them under contract. Cannabis News Wire projects that the worldwide CBD market will grow to more than a $2 billion industry within two years with a 39 percent compounded annual growth rate.
The LOI is for EVI to acquire all the issued and outstanding shares of Borganic for a purchase price consisting of 30,000,000 shares of EVI, adjusted for any of Borganic's outstanding liabilities on the closing date. As a condition to closing the acquisition, EVI will close a financing to raise an aggregate of C$3,000,000. Borganic has granted EVI a binding 60-day exclusivity period to execute a definitive agreement, complete due diligence and raise the required capital. The acquisition is anticipated to close in Q4 of 2018 assuming legal, regulatory and exchange approval of the transaction.
Private Placement
The Company is pleased to announce a non-brokered private placement offering of up to 12,000,000 units at a price of C$0.25 per unit for gross proceeds of up to C$3,000,000. Management of the Company may decide to increase the size of the financing by up to an additional $500,000. Each unit will consist of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one common share of the Company at a price of $0.50 for 1 year. The units issued in the offering are subject to a four-month hold period.
The Company may pay finder's fees in connection with the financing to certain eligible finders in the form of cash and/or securities.
"The use of CBD in the EU far exceeds its use in North America and represents mostly untapped business opportunity. Borganic's partnership with Dragonfly positions Borganic a year ahead of most competitors. This is the opportunity we've been looking for," exalted Jason Dussault, CEO of EVI Developments Corp. "The anticipated closing of this strategic acquisition is expected to establish us as a market leader in the CBD manufacturing market within the EU."
About Borganic Consulting Inc.
Borganic is focused on the commercial extraction of cannabidiol from industrial hemp and has engineered a proprietary commercial scale extraction process that is more cost efficient than other traditional extraction processes. Borganic's process utilizes a food grade ethanol extraction process that is far cleaner than many of the other commercial processes, which use harmful and potentially carcinogenetic products such as hexane and butane for extraction. Borganic has signed an exclusive three-year joint venture agreement with DragonFly Biosciences, LLC, a United Kingdom based corporation, to build an extraction facility in the European Union. Under the agreement, Borganic will process all the hemp produced from DragonFly's licenses in Bulgaria where they have planted over 1,200 acres of hemp and expect to harvest a minimum of 4.5 million grams of CBD for the EU market in September 2018.
About EVI Global Group Developments Corp.
EVI Global Group Developments Corp. (CSE:EVI) is a Vancouver, British Columbia based natural resource company engaged in the acquisition, exploration and development of mineral properties, with its primary focus on its silica properties, located within British Columbia.
Cautionary Note Regarding Forward Looking Statements: This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the building of a CPD extraction facility in the EU, the anticipated level of production at the planned CPD extraction facility in the EU, the forecasted growth of the CPD market in the EU by the year 2021, the successful completion of the acquisition of DragonFly and the anticipated closing date of the acquisition of DragonFly. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should" or "would" occur. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the building of a CPD extraction facility in the EU will be successful, the anticipated level of production at the planned CPD extraction facility in the EU will be accurate upon completion of the facility, the forecasted growth of the CPD market in the EU by the year 2021 will be accurate, the completion of the acquisition of DragonFly by the Company will be successful as anticipated and the closing date of the acquisition of DragonFly by the Company will be in Q4 of 2018. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, that the DragonFly will not successfully build a CPD extraction facility in the EU, the anticipated level of production at the planned CPD extraction facility in the EU will not be achieved due to changing market conditions or changes in the laws and regulations in respect of CPD extraction, the forecasted growth of the CPD market in the EU by the year 2021 will not be accurate, the completion of the acquisition of DragonFly by the Company will not be successful and the closing date of the acquisition of DragonFly by the Company will be delayed or the acquisition will not be successful. Readers are cautioned not to place undue reliance on forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.