Grown Rogue Grants Options and Issues Shares

Rhea-AI Summary

Grown Rogue International (OTC: GRUSF) announced the issuance of 1,385,000 common shares to directors, contractors, employees, and investors. This includes 385,000 shares for services rendered, 400,000 shares for a $100,000 debt reduction with Golden Harvests, and 600,000 shares for option payments to Canopy Management. Additionally, 1,085,000 stock options were granted to employees and consultants, with exercise prices ranging from $0.22 to $0.35 per share, valid for four years. All shares are subject to a four-month hold period.

Positive

• Company issued 1,385,000 common shares, which may improve liquidity.
• Reduction of $100,000 debt owed to Golden Harvests could enhance financial stability.
• Issuance of stock options may incentivize employees and consultants.

Negative

• Issuing shares can lead to shareholder dilution.
• Dependence on insider participation without minority shareholder approval could raise governance concerns.

Grown Rogue International Inc. (“Grown Rogue” or the “Company”) (CSE: GRIN) (OTC: GRUSF), a multi-state cannabis company with operations and assets in Oregon and Michigan, has announced that it has issued a total of 385,000 common shares to certain directors, contractors and employees of the Company relating to amounts owed for services rendered. The Company also issued 400,000 common shares to certain investors in Golden Harvests, LLC (“Golden Harvests”) in exchange for a reduction of debt owed to Golden Harvests in the amount of $100,000. In addition, the Company issued 600,000 common shares in satisfaction of certain option payments owing to Canopy Management, LLC (“Canopy Management”) in accordance with the option agreement entered into on February 4, 2021 providing Grown Rogue Unlimited, LLC the right to acquire 87% of Canopy Management, which shares were directed to be issued to certain owners of Golden Harvests in accordance with the option agreement between Canopy Management and the owners of Golden Harvests entered into on February 4, 2021 providing Canopy Management the right to acquire 60% of Golden Harvests. All of the above mentioned common shares were issued at a price of $0.25 per share.

The Company has also granted options to purchase an aggregate of 585,000 common shares of the Company (the “Stock Options”) to employees. The Stock Options are exercisable at a price of $0.22 per share for a period of four years from the date of grant. The Company also granted options to purchase an aggregate of 500,000 common shares of the Company (the “Consultant Stock Options”) to a consultant. The Consultant Stock Options are exercisable at a price of $0.35 per share for a period of four years from the date of grant.

The common shares described above and the common shares underlying the Stock Options and Consultant Stock Options are subject to a four month and one day hold period expiring on August 31, 2021.

The aforementioned issuances of common shares resulted in certain directors and officers of the Company receiving an aggregate of 255,000 common shares of the Company. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”), contained in section 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation.

About Grown Rogue

Grown Rogue International (CSE: GRIN | OTC: GRUSF) is a vertically-integrated, multi-state Cannabis family of brands on a mission to inspire consumers to “enhance experiences” through cannabis. We have combined an expert management team, award winning grow team, state of the art indoor and outdoor manufacturing facilities, and consumer insight based product categorization, to create innovative products thoughtfully curated from “seed to experience.” The Grown Rogue family of products include sungrown and indoor premium flower, along with nitro sealed indoor and sungrown pre-rolls and jars.

FORWARD LOOKING STATEMENTS

This press release contains statements which constitute “forward‐looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) statements regarding the future direction of the Company (ii) the ability of the Company to successfully achieve its business and financial objectives, (iii) plans for expansion of the Company into Michigan and securing applicable regulatory approvals, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward-looking information is not based on historical facts but instead reflect the Company’s management’s expectations, estimates or projections concerning the business of the Company’s future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws; compliance with extensive government regulation and related costs, and other risks described in the Company’s public disclosure documents filed on www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, an

FAQ

What is the significance of the 1,385,000 common shares issued by Grown Rogue International (GRUSF)?

The issuance of 1,385,000 common shares may improve liquidity and reduce debt, providing financial benefits.

How does the issuance of stock options impact Grown Rogue International's shareholders?

The issuance of stock options may dilute existing shares, which can impact shareholder value.

What are the exercise prices for the stock options granted to employees and consultants at Grown Rogue (GRUSF)?

The stock options are exercisable at prices of $0.22 and $0.35 per share.

Why is the debt reduction with Golden Harvests important for Grown Rogue International?

Reducing debt can enhance the company's financial stability and cash flow.