Gencanna get $30 million investment from Marimed for stock on Feb 11 2019
Gencanna buys $33.2 million dollars worth of seed from Marimed August 12, 2019
Gencanna cant pay its bills to contractors building new processing facility in Mayfield Kentucky Sept 11 2019
How in the world could this be right? You get $30 million and in turn and give right back plus interest? Wasnt that money meant for building infrastructure?
Marimed in essence got their investment back plus stock. February 11, 2019 08:48 ET
Source: MariMed Inc One of the largest multi-state cannabis operators in the U.S., announced today that pursuant to its November 2018 agreement with GenCanna Global USA, Inc., a recognized innovator and cultivator of industrial hemp, MariMed has converted its initial $30 million purchase of debentures into GenCanna common stock.
August 12, 2019 08:01 ET | Source: MariMed Inc. Q2 2019 Operational Highlights MariMed Hemp, the company’s CBD-focused subsidiary, delivered its first services revenues, the first in a series of sales of hemp seeds to GenCanna Global valued at a total of $25.2 million, with $22.0 million recognized in the second quarter.
Subsequent to the end of the quarter, the Company completed a second round of hemp seed sales to GenCanna totaling $8.0 million. (MariMed holds a 33.5% stake in GenCanna Global, a Kentucky-based national leader in seed-to-sale of GMP-quality, hemp-derived CBD).
MAYFIELD, KY — GenCanna's Mayfield, Kentucky, plant will not fully open until 2020 for the fall harvest. A spokesperson with the company told the Mayfield Messenger reports that "work is slowing down for now."
The Kentucky Department of Agriculture says it is "actively monitoring the situation with their hemp team, and senior staff have been in communication with GenCanna." The confirmation came Wednesday after days of phone calls and emails to the Office of Kentucky Agriculture Commissioner Ryan Quarles. On Aug. 30, the Mayfield Messenger reported an acknowledgement from GenCanna that a number of contractors working on the $40-million facility had unresolved payment issues.
GenCanna declined to answer our questions, and so did contractors we contacted. The contractors say they signed nondisclosure agreements to work on the project.
Graves County Economic Development President Ryan Drane wouldn't discuss the situation either. He also cited a signed confidentiality agreement. When we visited the plant site on Monday, Tuesday and Wednesday, we saw little activity. GenCanna referred us to a public relations company in Louisville, which didn't answer our questions. U.S. Rep. James Comer, who represents Kentucky District 1 and is a former Kentucky agriculture commissioner, says he was able to talk to GenCanna officials Wednesday. "I called GenCanna this morning, because I wanted to hear from them on what's going on," Comer says. "They assured me that everything was going to be OK. They felt like they would get their financing in order over the next couple weeks."
A source with firsthand knowledge of the situation tells Local 6 contractors are owed payments well into six figures. GenCanna is a privately held company, so its financial records are not publicly available. But, a publicly traded company, MariMed, in a June filing with the Securities and Exchange Commission, reported that it now owns a third of GenCanna.
MariMed's filing says it is owed more than $25 million that must be paid by GenCanna by December of this year. While the plant won't be open until next year, farmers' hemp crops will be handled by the companies plant in Winchester, Kentucky.
Farmers associated with GenCanna also can't talk about the company because of nondisclosure agreements.
The Mayfield Messenger also reported on Aug. 30 that GenCanna currently has some $100 million worth of hemp in production in Kentucky. That includes some 7,000 acres in production. GenCanna says planning evolution has slowed the plant construction.
In a previous statement, the company said incorporation of rapidly changing technologies into the construction is the issue.