Next Green Wave Announces Exciting OMG Expansion
Developments
Vancouver, British Columbia -- March
15, 2019 -- InvestorsHub NewsWire -- Next Green Wave
Holdings Inc. (CSE: NGW) (OTCQB: NXGWF)
("Next Green
Wave" or the
"Company"), is pleased to announce the signing of
definitive agreements in respect of its previously announced
transaction to take a strategic investment in Organic Medical Growth OMG3 INC.
("OMG"), a
Canadian based company focused on producing and commercializing CBD
products derived from medicinal and industrial cannabis in
Colombia.
Next Green Wave now has access to the Colombian cannabis market
which has an estimated potential to supply medicinal cannabis to
6 million patients. Through OMG's current distribution channel
of 7,300 pharmacies, Next Green Wave has the opportunity to license
its collection of brands and products into the Colombian
market.
Organic Medical Growth Company Update
OMG, with its experienced management team, continues to execute
according to its strategic roadmap. Further developments that have
taken place since the signing of the memorandum of understanding
between the parties on February 14, 2019 include the following:
- OMG has signed a joint venture with Cannabolland Cluster S.A.S
("Cannabolland"), a vertical biotech cluster based in Piedemonte
Llanero region, Meta (Colombia) that groups companies with cannabis
licenses with the aim of structuring the companies, consolidating
the licenses, providing technical knowledge and infrastructure. As
per the joint venture agreement, OMG has now access to the planned
production of cannabis on 5,000 hectares of land with possible
extension of the cultivation licenses for all types of production
to the geographical area of the cluster (up to 12,000 acres). The
six companies within Cannabolland, that include 2,500 associated
growers, have 3 psychoactive (THC) and 3 non-psychoactive (CBD)
licenses, as well as 2 transformational (extraction) licenses. In
collaboration with its strategic and distribution partner Ortix
S.A.S,
- OMG is working on the launch of 9 cannabis-based topical
products under the OMG brand. The first 2 products from the OMG
portfolio in Colombia will be distributed across Ortix network of
7,300 stores within the next 60 days.
OMG is actively pursuing a go-public transaction and focusing on
becoming a significant producer and supplier of medicinal cannabis
products and services in Colombia alongside companies such as
PharmaCielo and Khiron Life Sciences Corp. OMG is
positioning itself to become one of the lowest costs, high-margin
businesses operating in Colombia while delivering premium quality
cannabis products to their consumers.
"To see how quickly OMG is growing their business opportunities
in Colombia is exciting for Next Green Wave," stated Leigh Hughes,
CEO of Next Green Wave. "As OMG grow their distribution channels,
it opens up the platform for our brands outside of California and
gives us scope to do more in a low-cost, high-margin environment in
Colombia."
Terms of the Definitive Agreements and Strategic
Partnership
Under the terms of the Investment Agreement, Next Green Wave
will participate as follows:
- Invest in 2,000,000 common shares of OMG at CAD$0.25 per share
for a total amount of CAD$500,000 under a subscription agreement
with OMG
- Receive an additional 4,300,600 common shares representing 10%
of the share capital of OMG post it's first round of financing, in
exchange for NGW's provision of collaborative and commercial
strategic support services under a services agreement, as described
further below
- Receive an option to purchase 2,395,000 shares of OMG CAD$0.50
per share, or such other number of shares equivalent to 5% of the
share capital following its first round of financing
The Agreement is based on the expectation that OMG will complete
its Initial Public Offering (IPO) in 2019 and is also subject to
the approval of the Canadian Securities Exchange.
In consideration of the common shares issued in the capital of
OMG, Next Green Wave will collaborate and provide commercial
strategic support to OMG through a License and Service Agreement,
including the following:
- Adopting of nursery, cultivation and manufacturing techniques
that will enable OMG to produce high quality cannabinoid oil
through large scale production and in compliance with GMP
standards;
- Planning and design of necessary infrastructure for its outdoor
and indoor facilities; and
- Licensing of Next Green Wave's medicinal consumer product goods
and brands across OMG's entire distribution network subject to
countrywide regulation approval.
Next Green Wave's Executive Chairman and CEO, Leigh Hughes will
also be appointed to the advisory board of OMG and is expected to
be appointed as a full board member of OMG as part of its going
public transaction.
On behalf of the Board,
Leigh Hughes
CEO and Executive Chairman, Next Green Wave Holdings
Inc.
About Next Green Wave
Next Green Wave (NGW) is a vertically integrated
seed-to-consumer premium medicinal and recreational cannabis
company operating in California - the world's largest cannabis
market. NGW has acquired licenses for its nursery/breeding,
cultivation, extraction, and distribution operations covering both
medical and recreational cannabis production and services.
Construction of the indoor facility (35,000 ft²) has been completed
and is now moving into the production phase. NGW will be pushing
the innovation envelope with its current assemblage of strong
brands and partnerships as well as continue to forge new brands
that can be distributed across the globe. NGW has a library of more
than 120 genetic cannabis strains which include several cannabis
cup award winning genetics. The company currently owns 15 acres of
cannabis-zoned land in Coalinga, California and is positioned for
future growth and development. To find out more visit us at
www.nextgreenwave.com or follow us on Twitter at
@nextgreenwave, on Instagram, and LinkedIn.
About Organic Medical Growth OMG3 Inc.
OMG is a Canadian investment holding company focused on the
production and distribution of cannabidiol (CBD oil) for medicinal
purposes, sourced from organic certified farms in Colombia, as well
as the distribution of cannabis-based medicinal products in
Colombia and other markets. Through its joint venture agreements in
Colombia, OMG has access to cultivation and transformation licenses
and has an established distribution network through a strategic
partnership in Colombia. To find out more visit www.organicmedicalgrowth.com
Next Green Wave Forward Looking
Statements
This press release contains forward-looking statements
within the meaning of applicable securities laws. All statements
that are not historical facts, including without limitation,
statements regarding future estimates, plans, programs, forecasts,
projections, objectives, assumptions, expectations or beliefs of
future performance, are "forward-looking statements."
Forward-looking statements can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"estimates", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
events or developments to be materially different from any future
results, events or developments expressed or implied by such
forward looking statements. Such risks and uncertainties include,
among others, the risk factors included in the preliminary
prospectus, including without limitation dependence on obtaining
and maintaining regulatory approvals, including acquiring and
renewing state, local or other licenses and any inability to obtain
all necessary governmental approvals licenses and permits to
complete construction of its proposed facilities in a timely
manner; engaging in activities which currently are illegal under US
federal law and the uncertainty of existing protection from U.S.
federal or other prosecution; regulatory or political change such
as changes in applicable laws and regulations, including U.S.
state-law legalization, particularly in California, due to
inconsistent public opinion, perception of the medical-use and
adult-use marijuana industry, bureaucratic delays or inefficiencies
or any other reasons; any other factors or developments which may
hinder market growth; NGW's limited operating history and lack of
historical profits; reliance on management; NGW's requirements for
additional financing, and the effect of capital market conditions
and other factors on capital availability; competition, including
from more established or better financed competitors; and the need
to secure and maintain corporate alliances and partnerships,
including with customers and suppliers. Readers are encouraged to
the review the section titled "Risk Factors" in NGW's preliminary
prospectus. These factors should be considered carefully, and
readers are cautioned not to place undue reliance on such
forward-looking statements. Although NGW has attempted to identify
important risk factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other risk factors that
cause actions, events or results to differ from those anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in forward-looking statements. NGW no obligation to
update any forward-looking statement, even if new information
becomes available as a result of future events, new information or
for any other reason except as required by law.
For more information contact:
Next Green Wave
Caroline Klukowski
VP Corp. Development
Tel: +1 (778) 589-2848
IR@nextgreenwave.com
Organic Medical Growth OMG3 Inc
Jorge Diaz
President & CEO
Tel: +1 (514) 777 7627
IR@organicmedicalgrowth.com[
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