Grapefruit USA, Inc. Provides Update on Diagnostic Lab Corporation, Inc. Acquisition, Secures New Financing

Rhea-AI Summary

Grapefruit USA (OTCQB: GPFT) is progressing with its acquisition of Diagnostic Lab Corporation (DLC), a diversified food and agriculture safety company. The company is currently completing due diligence and negotiating financing terms, expecting to finalize these processes in the coming weeks. CEO Bradley J. Yourist emphasized the efficient collaboration among management and professionals to ensure the successful acquisition, despite current macroeconomic challenges. This move is part of Grapefruit's strategy to evolve into a wellness-driven, medical-focused biotech company.

Positive

• Proposed acquisition of Diagnostic Lab Corporation could diversify Grapefruit's business operations.
• Anticipated completion of due diligence signifies strong progress in strategic growth.

Negative

• Current macroeconomic environment poses risks to the acquisition and capital raising efforts.
• There is uncertainty regarding the company's ability to secure necessary funding for future growth.

LOS ANGELES and DESERT HOT SPRINGS, Calif., Aug. 18, 2022 (GLOBE NEWSWIRE) -- via InvestorWire -- Grapefruit USA, Inc. (OTCQB: GPFT) (“Grapefruit” or the “Company”), an innovative California-based cannabiotech company, today updates its recent announcement of the proposed acquisition of Diagnostic Lab Corporation of Englewood Cliffs, New Jersey (“DLC”), a diversified food and agriculture safety company, and also announces the recapitalization of the Company. The Company is finalizing its due diligence on DLC and is in the final stages of negotiating the terms of its anticipated financing and structuring of the transaction documents, all of which it expects to complete in the next several weeks.

Bradley J. Yourist, Grapefruit’s CEO and co-founder, commented, “We are providing this update at this time to inform our many loyal shareholders that the Company is making significant progress with respect to the DLC acquisition, despite the challenging current macroeconomic environment and its influence on capital markets. Despite these potential distractions, Grapefruit’s management, staff and outside professionals continue to work very efficiently together to ensure a successful acquisition of DLC as the next event in the Company’s evolution to a wellness-driven, medical science-based, canna-focused biotech company.”

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To learn more about Grapefruit’s new sustained-release patented Hourglass™ THC + Cannabinoid topical cream, please watch this promotional video: https://www.youtube.com/watch?v=6cU9MJMgH1w&feature=youtu.be
and visit our website at: https://grapefruitblvd.com/hourglass/

For investor information, please visit Grapefruit’s website at:
https://grapefruitblvd.com/investor-relations/

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About Grapefruit

Grapefruit’s corporate headquarters is in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products in the Golden State. Grapefruit’s extraction laboratory and manufacturing and distribution facilities are located in the industry-recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Road, approximately 14 miles north of downtown Palm Springs. To obtain further information on Grapefruit and its operations, please visit the Company’s website at https://grapefruitblvd.com/.

Safe Harbor Statement

Grapefruit cautions that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties inherent in Grapefruit’s business, including, without limitation: the Company may not ever obtain additional funds necessary to support its business development and growth plans; and the Company may not ever achieve the market success to reach or sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger cannabis companies, unexpected costs and delays, potential product liability claims and many other factors. More detailed information about Grapefruit and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2021, and its Registration Statement on Form S-1/A. Such documents may be read free of charge on the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Grapefruit undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.

Investor Relations Contact:
Bradley Yourist
ir@grapefruitblvd.com
18776 Blue Dream Crossing, Unit LL1 53-07
Desert Hot Springs, California 92240
(760) 205-1382
https://grapefruitblvd.com/

Please be aware that our social media accounts can be used from time to time for additional material events. They can be found here:

Grapefruit USA:
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Instagram: https://www.instagram.com/grapefruit_usa/
Twitter: https://twitter.com/grapefruitusa
LinkedIn: https://www.linkedin.com/company/grapefruit-boulevard/
Weedmaps: https://weedmaps.com/brands/grapefruit

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

 

FAQ

What is the status of Grapefruit's acquisition of Diagnostic Lab Corporation?

Grapefruit is finalizing due diligence and negotiating terms for its acquisition of DLC, expecting completion soon.

How will the acquisition of DLC impact Grapefruit (GPFT)?

The acquisition aims to diversify Grapefruit's operations and enhance its position in the wellness-driven biotech sector.

What challenges is Grapefruit facing during the acquisition process?

Grapefruit faces challenges due to the current macroeconomic environment affecting capital markets and funding.

When is Grapefruit expected to complete the DLC acquisition?

Grapefruit expects to complete the acquisition and related financing arrangements within the next several weeks.