Crucial Innovations Corp To Acquire Eco Equity, a Medical Cannabis Operator in Zimbabwe Through Reverse Merger

Rhea-AI Summary

Crucial Innovations Corp (CINV) announced a reverse merger with Eco Equity (Pty) Limited, a medical cannabis operation in Zimbabwe, appraised at $210 million. The acquisition will allow CINV to own 100% of Eco Equity and its cultivation assets. To finance the merger, CINV plans a private placement to raise $25 million at $5.00 per share. Following the merger, CINV will be rebranded as Eco Equity Corp. The merger's completion hinges on certain conditions, including the filing of CINV's SEC documents and Eco Equity's audited financials.

Positive

• Acquisition of Eco Equity valued at $210 million enhances market presence in medical cannabis.
• Projected annual production of 15,470 Kg of high-THC cannabis flower showcases growth potential.
• Private placement of $25 million indicates investor confidence and funding for expansion.

Negative

• Dependence on completion of SEC filings may delay merger finalization.
• Integration challenges and market competition could affect profitability timelines.

LAS VEGAS, NV / ACCESSWIRE / September 16, 2021, Crucial Innovations Corp, (OTC PINK:CINV), a Nevada company, today announced that it has agreed to acquire, through a reverse merger ("the Merger"), Eco Equity (Pty) Limited, a medical cannabis operation in Zimbabwe, Africa, operating as a subsidiary of JPD Capital PCC, a Guernsey investment fund with multiple investments in the medical cannabis sector in Africa and the UK.

CINV will acquire 100% of the stock of Eco Equity (Pty) Limited ("ECO") and the entirety of its medical cannabis cultivation assets, at a valuation of $210,000,000, as appraised by Baker Tilly International in a recent review, and

As part of the agreement, CINV has agreed to undertake a private placement offering pursuant to Regulation D - Rule 506 in the US, and to foreign investors under Regulation S, to raise $25,000,000 at $5.00 per share. The private placement will be available to accredited investors immediately following the completion of the Merger.

"This is a major milestone in the evolution of Eco Equity. For nearly three years we have been at the leading edge of the industry, and now we will be the first Africa-only cannabis producer to be publicly traded on a US market," said JP Doran, JPD's co-founder and chief executive. "Our low-cost production model and focus on medically useful genetics and cannabinoids position ECO to become a dominant force in the increasingly global cannabis market; this Merger will give us the resources we need to accomplish that objective."

Upon completion of the Merger, ECO will become a wholly-owned subsidiary of the publicly-traded company which will be renamed Eco Equity Corp, and apply for a new stock trading symbol to reflect its new name and brand.

The completion of the reverse merger is subject to certain conditions including CINV filing its June 30 10 Q and being current in its SEC Filings, and Eco Equity Zimbabwe (Pty) Limited delivering its audited financial statements.

About Eco Equity Zimbabwe (Pty) Limited
ECO's facilities in Zimbabwe include a fully licensed 16,500 m² polytunnel greenhouse, a 450 m² R&D facility for genetics research, and an onsite pumphouse that provides adequate power to service all operations.

The cultivation site is 24,000 m² and a 14,000 m² post-harvest facility houses extraction equipment and packaging machines. The company is also preparing to build a GACP/EU-GMP certified, state-of-the-art, fully computerized 20,800 m² glass greenhouse.

Currently operating at a forecast annual production rate of 15,470 Kg of high-THC cannabis flower and 1,591 Kg of distillate oil, management intends to continue scaling the operation to meet growing demand and expects to announce its first product sales by the end of 2021 and projects that it will be profitable in 2022.

ECO has a strong commitment to corporate responsibility. Through partnerships with community organizations, it provides local residents with access to healthcare and creates jobs. The company also built a solar plant on-site to meet its operating power requirements and redirects surplus energy to the community for domestic consumption.

For more information see www.eco-equity.com

Safe Harbor Statement: This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934; and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and as such are by definition subject to risks and uncertainties.

Contact:
Laura De Leon Castro, CEO
Email: lauradlc@protonmail.com

Authorized by Laura De Leon Castro, CEO

SOURCE: Crucial Innovations Corp.

View source version on accesswire.com:
https://www.accesswire.com/664427/Crucial-Innovations-Corp-To-Acquire-Eco-Equity-a-Medical-Cannabis-Operator-in-Zimbabwe-Through-Reverse-Merger

FAQ

What is the significance of Crucial Innovations Corp's reverse merger with Eco Equity?

The merger allows Crucial Innovations Corp to enter the medical cannabis market with a valued acquisition of $210 million in assets.

What are the financial plans related to the acquisition of Eco Equity by CINV?

CINV plans to raise $25 million through a private placement at $5.00 per share to finance the acquisition.

What is the expected production capacity of Eco Equity after the merger?

Eco Equity has a forecast annual production rate of 15,470 Kg of high-THC cannabis flower.

When does Crucial Innovations Corp expect to announce product sales?

CINV expects to announce its first product sales by the end of 2021, following the completion of the merger.

What conditions must be met for the merger between CINV and Eco Equity to close?

The merger completion requires CINV to file its June 30 10 Q and for Eco Equity to provide audited financial statements.