J. Obie Strickler of Grown Rogue to File Early Warning Report

Rhea-AI Summary

Mr. J. Obie Strickler, CEO of Grown Rogue International, has acquired 1,600,000 units at $0.16 each, totaling $256,000. Each unit consists of one common share and one warrant, exercisable at $0.20 per share until February 5, 2023. Previously, he held 29,418,766 common shares, representing approximately 26.78% ownership. After the acquisition, his stake is now 31,018,766 shares, about 26.27% non-diluted. This acquisition was for investment purposes, with no immediate plans for further purchases. An early warning report will be filed as per regulatory requirements.

Positive

• CEO J. Obie Strickler increased his stake in the company, demonstrating confidence in Grown Rogue International.
• The acquisition involves a combination of common shares and warrants, potentially enhancing future equity value.

Negative

• Strickler's ownership percentage decreased from 26.78% to 26.27% on a non-diluted basis after the acquisition.

Mr. J. Obie Strickler, President and Chief Executive Officer of Grown Rogue International Inc. (the “Issuer”), will file an early warning report advising of his acquisition of 1,600,000 units (“Units”) of the Issuer.

Mr. Strickler subscribed for a total of 1,600,000 Units, at a price of $0.16 per Unit, for a total subscription of $256,000. Each Unit is comprised of one common share of the Issuer (each a “Common Share”) and one Common Share purchase warrant (each a “Warrant”), each Warrant entitling Mr. Strickler to acquire one additional Common Share until February 5, 2023 at a price of $0.20 per Common Share. The Issuer has the right to accelerate the expiry date of the Warrants to thirty days following written notice to Mr. Strickler if the closing market price of the Common Shares is at or above $0.32 per Common Share for a period of ten consecutive trading days.

Early Warning Disclosure Pursuant to National Instrument 62-103

Immediately prior to completion of the offering, Mr. Strickler held 29,418,766 Common Shares and controlled 500,000 stock options of the Issuer (the “Options”), representing approximately 26.78% of the issued and outstanding Common Shares on a non-diluted basis and approximately 27.11% of the issued and outstanding Common Shares on a partially diluted basis, assuming the exercise of the all of the Options controlled by Mr. Strickler.

Pursuant to the offering which was completed on February 5, 2021, Mr. Strickler acquired 1,600,000 Common Shares and 1,600,000 Warrants. Mr. Strickler now beneficially owns or controls 31,018,766 Common Shares, 1,600,000 Warrants and 500,000 Options, representing approximately 26.27% of the issued and outstanding Common Shares on a non-diluted basis and approximately 27.56% of the issued and outstanding Common Shares on a partially diluted basis, assuming the exercise of the all of the Warrants and Options held and controlled by Mr. Strickler.

The Common Shares and Warrants of the Issuer were acquired for investment purposes. Presently, Mr. Strickler has no intention of acquiring any securities of the Issuer. Mr. Strickler may acquire ownership of or control over further securities of the Issuer in the future depending upon market circumstances. Increase or decrease in ownership of securities of the Issuer will depend on numerous conditions, including the price of the Common Shares and general market conditions.

This news release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues of the Canadian Securities Administrators, which also requires an early warning report to be filed with the applicable securities regulators containing additional information with respect to the foregoing matters. A copy of the early warning report can be obtained by contacting Mr. Strickler at c/o Grown Rogue International Inc., 340 Richmond Street West, Toronto, Ontario, M5V 1X2. A copy of the early warning report in connection with the foregoing will appear under the Issuer’s profile on SEDAR (www.sedar.com).

View source version on businesswire.com: https://www.businesswire.com/news/home/20210208005806/en/

FAQ

What is the significance of J. Obie Strickler's acquisition of shares in Grown Rogue International?

J. Obie Strickler's acquisition of 1,600,000 units reflects his confidence in the company's future, despite a slight decrease in ownership percentage.

What is the price and total value of the units acquired by J. Obie Strickler?

J. Obie Strickler acquired 1,600,000 units at a price of $0.16 each, totaling $256,000.

When do the warrants acquired by Strickler expire?

The warrants acquired by Mr. Strickler expire on February 5, 2023.

What percentage of shares does Mr. Strickler own after his latest acquisition?

After the acquisition, Mr. Strickler owns approximately 26.27% of the issued and outstanding common shares on a non-diluted basis.

Where can I find the early warning report related to this acquisition?

The early warning report can be found on the SEDAR website under Grown Rogue International's profile.