Origin House to Convert MÜV Royalty Interest to AltMed Equity, Increasing Ownership Position in Leading Florida and Arizona Cannabis Company
Ottawa, Canada – January 15, 2019 – CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF), (“Origin House” or the “Company”) a leading North American cannabis products and brands company, today announced that it has signed a binding term sheet (the “Agreement”) with Alternative Medical Enterprises, LLC (“AltMed”) to convert the Company’s 3.5% royalty interest on the sale of AltMed’s MÜV branded products (“MÜV”) into a combination of cash and 125 units of AltMed’s equity raising Origin House’s aggregate equity position in AltMed to 5.1%.
Marc Lustig, Chairman and CEO of Origin House said, “AltMed has established itself as a successful cannabis business in the key markets of Florida and Arizona. Based on our discussions with AltMed, we believe eliminating the royalty will facilitate the multi-jurisdictional expansion of MÜV products and also furthers our strategic aim of converting non-core assets like the MÜV royalty. We are confident in AltMed’s prospects and believe that our increased equity position will continue to lead to significant value creation for Origin House shareholders.”
Origin House currently owns a 4.8% equity interest in AltMed and a 3.5% gross product royalty on the sale of certain MÜV products. Pursuant to the Agreement, AltMed will issue 125 units to Origin House in addition to cash, as consideration for the Company’s royalty interest. Upon conversion of the royalty interest, Origin House will own an aggregate of 5.1% of AltMed. Based on the valuation ascribed to AltMed for the conversion of the royalty, this 5.1% equity position has an equity value of US$10.3 million. The anticipated closing date is on or before February 15, 2019.
About Origin House
Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. The Company’s foundation is in California, the world’s largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries. Origin House’s brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke. Origin House’s shares trade on the Canadian Securities Exchange (CSE) under the symbol “OH” and on the OTCQX under the symbol “ORHOF”. Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.
For further inquiries, please contact:
Marc Lustig, Chairman and CEO
Jonathan Ross, Origin House Investor Relations
LodeRock Advisors Inc.