Grown Rogue Issues Shares for Services

Rhea-AI Summary

Grown Rogue International (CSE:GRIN, OTC:GRUSF) has issued 131,250 common shares to certain officers at a price of $0.20 per share as compensation for services rendered. This transaction is classified as a related party transaction under Multilateral Instrument 61-101, with Grown Rogue utilizing exemptions from the valuation and minority shareholder approval requirements. The shares will face a four-month hold period, expiring on December 1, 2021. Grown Rogue operates in Oregon and Michigan, focusing on cannabis production and distribution.

Positive

• Issued shares at $0.20 per share, potentially improving cash flow.
• Utilized exemptions under MI 61-101, minimizing regulatory burden.

Negative

• Issuance of common shares could lead to shareholder dilution.

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 131,250 common shares to certain officers of the Company relating to amounts owed for services rendered. All of the above mentioned common shares were issued at a price of $0.20 per share and are subject to a four month and one day hold period expiring on December 1, 2021.

The aforementioned issuances of common shares to certain officers of the Company constitutes a “related party transaction” under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in section 5.5(b) and 5.7(a) of MI 61-101.

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.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further information on Grown Rogue International please visit www.grownrogue.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210730005587/en/

FAQ

What is the recent share issuance by Grown Rogue International (GRUSF)?

Grown Rogue International recently issued 131,250 common shares at $0.20 per share to certain officers, related to services rendered.

How does the share issuance affect Grown Rogue's shareholders?

The share issuance could lead to potential dilution of existing shareholders' equity.

What regulatory exemptions did Grown Rogue International use for the share issuance?

Grown Rogue relied on exemptions from the valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.

What is the hold period for the newly issued shares of Grown Rogue (GRUSF)?

The newly issued shares are subject to a hold period expiring on December 1, 2021.