Cannabis Growth Opportunity Corp (OTCMKTS:CWWBF) has raised funds of $1.5 million through a private placement of its 726,744 common shares in Next Green Wave Holdings Inc (OTCMKTS:NXGWF). The issue price is fixed at $1.72. The company will also invest $2.75 million to acquire 11 million shares of Next Green Wave at $0.25 per each share. Cannabis Growth increases its stake in Next Green Wave to 12.11 million shares with this investment. Next Green Wave and Cannabis Growth have also entered a resale and voting agreements that extend resale restrictions to next year.
Transition from private to a public company
COO and President of Cannabis Growth, Jamie Blundell said the company had been a strategic investor in the private firm: Next Green Wave since last June. Cannabis Growth has supported Next Green Wave to go public in October 2018. The company expects revenue regeneration from Next Green Wave in the near term. It is the perfect time for the investors to enter the Next Green Wave, and the company is confident of tremendous growth.
Executive Chairman and Chief Executive Officer of Next Green Wave, Leigh Hughes said the company has received continuous support from Cannabis Growth in its efforts to go public from a private company.
NAV of Cannabis Growth
The net asset value (NAV) of Cannabis Growth is $3.41 at the closing day of May 15, 2019. It is an increase of 47% since the IPO on January 26, 2018. The company holds 99% of the investments in companies conducting business in Israel, Jamaica, Europe, and Canada. Its top ten investments as on May 15, 2019, include Planet 13 Holdings Inc, Heritage Cannabis, GR Companies Inc, C21 Investments Corp, Vireo Health Inc, Indus Holding Company, ICC International Cannabis Corporation, VIVO Cannabis, and Valens Groworks Corp.
Cannabis Growth has invested $350,000 in Tokr LLC in January 2019. Tokr is engaged in the development of application software, which facilitates the connectivity between lifestyle brands and new cannabis users and modernizes the cannabis industry. It is part of the Cannabis Growth’s commitment to improving the value for shareholders in the long term by investing in the cannabis value chain.