EVI Global Group to acquire Borganic Consulting

EVI GLOBAL GROUP DEVELOPMENTS CORP. ANNOUNCES THE SIGNING OF A NON-BINDING LETTER OF INTENT WITH BORGANIC CONSULTING INC. AND NON-BROKERED PRIVATE PLACEMENT OF UNITS

EVI Global Group Developments Corp. has signed a non-binding letter of intent with Borganic Consulting Inc., which is focused on the commercial extraction of cannabidiol (CBD) from industrial hemp. Borganic has engineered a proprietary commercial-scale extraction technology that is more cost-efficient than other traditional extraction processes. Borganic has also secured an exclusive joint venture partnership with United Kingdom-based DragonFly Biosciences LLC to build a CBD extraction facility to service the European Union (EU). DragonFly’s 2018 harvest of 420 hectares of CBD-rich hemp is expected to produce a minimum of 4.5 million grams of CBD. The extraction facility has the capability to produce over 18 million grams of CBD annually, making it one of the largest refineries of CBD in Europe. The company has also received multiple enquiries from other European Union-based hemp producers to extract CBD for them under contract. Cannabis News Wire projects that the worldwide CBD market will grow to more than a $2-billion industry within two years with a 39-per-cent compounded annual growth rate.

The letter of intent is for EVI to acquire all the issued and outstanding shares of Borganic for a purchase price consisting of 30 million shares of EVI, adjusted for any of Borganic’s outstanding liabilities on the closing date. As a condition to closing the acquisition, EVI will close a financing to raise an aggregate of $3-million. Borganic has granted EVI a binding 60-day exclusivity period to execute a definitive agreement, complete due diligence and raise the required capital. The acquisition is anticipated to close in Q4 2018, assuming legal, regulatory and exchange approval of the transaction.

Private placement

The company has arranged a non-brokered private placement offering of up to 12 million units at a price of 25 cents per unit for gross proceeds of up to $3-million. Management of the company may decide to increase the size of the financing by up to an additional $500,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share of the company at a price of 50 cents for one year. The units issued in the offering are subject to a four-month hold period.

The company may pay finders’ fees in connection with the financing to certain eligible finders in the form of cash and/or securities.

“The use of CBD in the EU far exceeds its use in North America and represents mostly untapped business opportunity. Borganic’s partnership with DragonFly positions Borganic a year ahead of most competitors. This is the opportunity we’ve been looking for,” exalted Jason Dussault, chief executive officer of EVI. “The anticipated closing of this strategic acquisition is expected to establish us as a market leader in the CBD manufacturing market within the EU.”

About EVI Global Group Developments Corp.

EVI Global Group Developments is a natural resource company based in Vancouver, B.C., engaged in the acquisition, exploration and development of mineral properties, with its primary focus on its silica properties, located within British Columbia.

We seek Safe Harbor.

 

EVI Global Group closes $4-million private placement

EVI ANNOUNCES CLOSING OF OVERSUBSCRIBED NON-BROKERED PRIVATE PLACEMENT

EVI Global Group Developments Corp. has closed its non-brokered private placement previously announced on Sept. 5, 2018. Due to increased demand, the previously announced private placement was increased from $3-million to $4-million with 16 million units at a price of 25 cents per unit.

Each unit in the private placement comprises one common share and one-half of a transferable common share purchase warrant. Each whole warrant is exercisable into one additional common share at a price of 50 cents for a period of one year. The securities will be subject to a four-month-and-one-day hold period under applicable securities laws.

In connection with the private placement, EVI Global Group Developments paid certain arm’s-length finders a finder’s fee consisting of: (i) cash equal to 6 per cent of the total gross proceeds from subscribers introduced to EVI Global Group Developments by the applicable finder; and (ii) such number of finders’ warrants equal to 6 per cent of the total number of shares issued to subscribers introduced to EVI Global Group Developments by the applicable finder. Each finder’s warrant is exercisable into one additional common share at a price of 50 cents for a period of one year.

EVI Global Group Developments intends to use the net proceeds from the private placement for expenditures related to previously announced letter of intent with Borganic Consulting Inc., general working capital and other corporate matters.

 

EVI Global firms up acquisition of Borganic Consulting

EVI ANNOUNCES PROPOSED ACQUISITION OF BORGANIC CONSULTING INC.

In connection with the letter of intent with Borganic Consulting Inc. previously announced on Sept. 6, 2018, EVI Global Group Developments Corp. has entered into a definitive share exchange agreement with Borganic under which the company has agreed to acquire all the issued and outstanding shares of Borganic in exchange for an aggregate of 30 million common shares of the company, being 43.57 per cent of the company’s total issued and outstanding shares. The share exchange agreement remains subject to a number of conditions, including but not limited to the approval of the Canadian Securities Exchange, receipt of all other required regulatory approvals and customary closing conditions.

The company is also pleased to announce 1.05 million stock options have been granted to certain consultants pursuant to the company’s stock option plan. The options are immediately exercisable for a period of five years at a price of 63 cents per share.

The company is also proposing a change of business from a mining issuer to a life sciences issuer.

Completion of the change of business is subject to a number of conditions, including Canadian Securities Exchange and shareholder approval.

“I believe 2019 will be known as the year of CBD,” explained EVI’s chief executive officer, Jason Dussault. “In all businesses, timing is everything. We are at the right place, at the right time, with the right team. I feel our agreements and technologies position us perfectly in this marketplace. I see a future that is salt, pepper, CBD!”

About Borganic Consulting Inc.

Borganic is focused on the commercial extraction of cannabidiol from industrial hemp and has engineered a proprietary commercial-scale extraction process that is more cost-efficient than other traditional extraction processes. Borganic’s technology utilizes a food-grade ethanol extraction method that is far cleaner than many of the other commercial operations which use harmful and potentially carcinogenetic products such as hexane and butane for extraction.

About EVI Developments Corp.

EVI Global Group Developments is a natural resource company based in Vancouver, B.C., engaged in the acquisition, exploration and development of mineral properties, with its primary focus on its silica properties, located within British Columbia.

We seek Safe Harbor.