Nabis Corporate Update – Arizona
VANCOUVER, British Columbia, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) (FRA: A2PL) (“Nabis” or the “Company”) announces that Nabis AZ, LLC (“Nabis AZ”), a wholly-owned subsidiary of the Company, failed to fund its deferred payment obligation in respect of an asset purchase agreement for the assets and management agreements related to the operation and management of Perpetual Healthcare Inc. (“Perpetual”), the operator of the Emerald medical marijuana retail dispensary located in Arizona. Nabis AZ was required to make payment to the vendors under such asset purchase agreement of approximately USD $8.1 million, including accrued interest, which was due on October 25, 2020 (the “Deferred Obligation”). The Company’s efforts to secure alternative financing to fulfill the Deferred Obligation have been unsuccessful to date.
Nabis AZ has received formal written notice of its default on the Deferred Obligation. Following the lapse of a 10 business day cure period ending November 10, 2020, in addition to the acceleration of the approximately USD $8.1 million owing, the terms of the Deferred Obligation contemplate that (i) a specified representative of the vendor will be appointed to the board of directors of Perpetual, and (ii) an amended and restated operating agreement in respect of Nabis AZ will become effective, providing certain specified representatives of the vendor with an aggregate 75% membership interest in Nabis AZ with certain limited governance rights, whereby such persons will be entitled to a monthly pro rata preferred distribution in respect of their 75% aggregate membership interest until the Deferred Obligation is satisfied.
The Company will provide further updates in respect of the foregoing matters as they progress.
About Nabis Holdings Inc.
Nabis Holdings is a Canadian investment issuer that invests in high quality cash flowing assets across multiple industries, including real property and all aspects of the U.S. and international cannabis sector. The Company is focused on investing across the entire vertically integrated aspects of the space with a focus on revenue generation, EBITDA and growth. For more information, please visit https://www.nabisholdings.com/.
All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The risks are without limitations: that the acquisitions will be completed by the Company or completed upon the terms disclosed; the price for cannabis and related products will remain consistent and the consumer demand remains strong; availability of financing to the Company to develop the retail locations; retention of key employees and management; changes in State and/or municipal regulations of retail operations and changes in government regulations generally. Important factors that could cause actual results to differ, materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the Canadian Securities Exchange, the British Columbia Securities Commission, the Ontario Securities Commission and the Alberta Securities Commission.
The Canadian Securities Exchange has neither reviewed nor approved the contents of this news release and accepts no responsibility for the adequacy or accuracy of this release.
For inquiries, please contact:
Emmanuel Paul, Chairman of the Board
Released October 28, 2020