EVI Global Group Developments Corp.’s (“EVI”) has acquired 100% of Borganic Consulting Inc. (“BCI”) through the issuance of 30 million common shares (adjusted further for any BCI outstanding liabilities).
EVI is a public company listed for trading on the Canadian Securities Exchange (the “CSE”) under the symbol “EVI”. BCI is a private B.C. incorporated company.
BCI has developed an early-stage proprietary, extraction and distillation system that can extract/distill highly pure CBD oils from hemp and/or from marijuana. A working prototype of the Extraction System is already constructed, deployed and set-up.
At the same time, in order to secure an ample and continuous supply of hemp plant crops and feedstock, BCI has reached a binding letter of intent (“LOI”) with DragonFly Biosciences (UK) LLC. (“DFB”) to form an exclusive joint venture (“JV”) company – i.e., named Premium Extractions, Inc. (“PEI”). The LOI sets out that PEI is owned 49% by BCI (to be SCC) and 51% by DFB. The LOI also sets out that DFB is: (a) contributing continuous long-term access to its hemp crops; (b) will provide certain processing equipment; (c) its growing expertise; and (d) a take-up agreement with PEI to purchase a minimum of 50,000 grams of CBD per month at 2 Euros per gram. Conversely, the LOI sets out that BCI will provide: (a) PEI access to use its Extraction System; (b) capital to fund the development of PEI’s initial Romanian extraction facility (“Extraction Facility 1”) located near the Bulgaria/Romania border. and (c) BCI’s operational extraction management capabilities as well as capital markets expertise.
DFB is a private London, England incorporated firm that has raised approximately US$5.0 million to-date to fund its business development primarily in setting up crops and a GMP-grade laboratory in Sophia, Bulgaria.
DFB has a 100% subsidiary – DragonFly Biosciences Bulgaria Ltd. (“DFB- Bulgaria”). DFB-Bulgaria commenced growing hemp near Sophia, Bulgaria in April of 2017 on 10 hectares of DFB-Bulgaria owned land (which it harvested in September of 2017).
The results of this harvest was 10,000 lbs. of hemp flowers. Independent testing of the crops showed it contained 4.5% CBD by volume. In 2018 DFB-Bulgaria commenced cultivating hemp on 420 hectares over three Bulgarian locations. DFB notes it can produce approximately 232,000 kg of hemp crop on organically certified land that has high-quality soil and also has access to irrigation.
DFB management (of which Mr. Crimeni is an advisory and shareholder owning 5% of DFB) notes it can produce approximately 4.5 million grams of CBD– making it one of Europe’s largest producers. The planned Extraction Facility will have the capability to produce over 18 million grams of CBD annually.
EVI’s acquisition of BCI also involves a concurrent financing of C$4,000,000 at a unit price of $0.25 each unit consists of one common share and one-half of one common share purchase warrant where each purchase warrant will entitle the holder to purchase one common share of SCC at a price of C$0.50 for one year). Also, the amalgamation of EVI/BCI will result in the public company seeking from the CSE a name change request to “Stillcanna Inc.”. The Funding is planned to be used to build out the Romanian Extraction Facility (C$1.0 million) and Extraction Facility 2 (C$1.5 million), in Canada. Stillcanna will continue to trade and be listed on the CSE.
The listing statement in connection with EVI Global Group Developments Corp.’s change of business has been filed with The CSE for approval from the CSE to bring to trade the Reporting Issuer under the symbol “SCC”.