LOS ANGELES and DESERT HOT SPRINGS, Calif., May 09, 2022 (GLOBE NEWSWIRE) -- via InvestorWire -- Grapefruit USA, Inc. (OTCQB: GPFT) (“Grapefruit” or the “Company”), an innovative California-based cannabiotech company, is providing an update on its previously announced execution of a Memorandum of Understanding (“MOU”) with Diagnostic Lab Corporation of Englewood Cliffs, New Jersey, (“DLC”) a diversified food and agriculture safety company, concerning Grapefruit’s acquisition of DLC. The Company and DLC (the “Parties”) have been in regular discussions since the execution of the MOU concerning the terms and timing of the proposed acquisition.
The Parties have developed a plan pursuant to which Grapefruit will acquire substantially all of the assets of DLC which are necessary for the ongoing business of DLC and its affiliates. The Parties’ plans to obtain financing of $12.5 million, $7 million of which has already been committed, to build out its “Mothership” state of the art cultivation and laboratory center on the Company’s property at the Coachillin Industrial Cultivation and Ancillary Canna-Business Park (the “Coachillin Park”). The remaining funds will be utilized for the DLC asset purchase which will be acquired for a combination of cash and stock, to seek a 510K approval from the FDA for Grapefruit’s proprietary Hourglass™ THC/Cannabinoid delivery cream, initiate a series of acquisitions of synergistic testing labs, and for working capital and loan interest reserves. The Parties plan to retire the debt through a public equity raise and concurrent uplist to a U.S. or Canadian exchange.
Bradley J. Yourist, Grapefruit’s CEO and co-founder, commented, “As previously announced, these will be the next steps in Grapefruit’s evolution into a medical science-based cannabiotech company which will develop and obtain regulatory approval for an ever-expanding line of proprietary Hourglass technology-based cannabis products. The build out of the ‘Mothership’ cultivation and lab facility at the Coachillin Park will guarantee a reliable source of reasonably priced pharma quality cannabis flowers to provide the base for non-hemp Hourglass products and for distribution in both the U.S. and Canada, when appropriate. Obtaining the 510K approval for the Hourglass technology will facilitate its rapid market acceptance. Our lab acquisition program will provide rapid revenue growth and expand the Company’s cannabis industry expertise. The Parties expect to execute and announce a binding letter of intent before the end of May 2022.”
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.
