Captor Capital Corp. (“Captor” or the “Company”) (CSE: CPTR; FRANKFURT: NMV; USOTC: NWURF) today announced that it has closed its acquisition of Mellow Extracts, LLC (“Mellow”). Under the deal terms, Captor has acquired 100 per cent of the securities of Mellow Extracts, LLC in exchange for 3,750,000 common shares of Captor at a deemed issue price of $0.20 per common share. Mellow Extracts will produce ultra-premium oil in a state-of-the-art extraction lab facility in Costa Mesa, California. Mellow will provide California state-compliant service-for-hire extraction, as well as co-packing capacities for white label and private label cannabis brands focusing on cannabis extracts. In addition to this, Mellow will provide oils and premium concentrates to Captor’s retail outlets.
“Cannabis processing and manufacturing is an incredibly fast-growing market segment, and we believe Mellow will be an important asset for Captor,” said Captor CEO, John Zorbas. “It is a very exciting time with Mellow’s expansion in Costa Mesa and they fit the profile for Captor’s overall investment strategy in the space.”
Earlier this year, Mellow successfully obtained a Conditional Use Permit (CUP) from the city of Costa Mesa. The CUP application was approved at a public hearing on February 26th and became effective March 5, 2018. The CUP also permits Mellow to expand their extraction lab and manufacturing facilities. Final tenant improvements on the building are underway with the occupancy permit expected shortly.
“We expect Mellow to carve out a unique position as a supply chain partner between distributors and brands. In advance of Mellow’s extraction facility becoming fully operational, the company has already received approximately $500,000 in monthly purchase orders,” said John MacPhail, CEO, I-5 Holdings, a wholly owned Captor Capital subsidiary.
Mellow Extracts founder and CEO, Matt Longo, has a breadth of experience in the cannabis industry that includes the operation of a successful California medical cannabis delivery service, the design of customized shipping containers for specific use in the regulated commercial cannabis extraction environment and medical cannabis dispensary operations. In addition, for almost a decade Mr. Longo has acted as a consultant in the industry specializing in regulatory compliance and tax structuring.
About Captor Capital
Captor Capital Corp. is a Canadian firm focused on the cannabis sector listed on the Canadian Securities Exchange, the OTC, and the Frankfurt Stock Exchange. A vertically integrated cannabis company, Captor provides recreational and medical marijuana based products to consumers via its leading brands and dispensary locations. Listed on the Canadian Securities Exchange, the OTCUSA, and the Frankfurt Stock Exchange, Captor owns and operates advanced growing facilities which produce consistent high quality contaminant free marijuana for its customers, as well as other high demand cannabis based goods for consumption. The company follows a strategy of acquiring cash flowing established companies and organizations with growth potential that require capital to scale. Captor currently has a number of revenue generating cannabis investments including two wholly owned branded MedMen dispensaries – the world famous West Hollywood location and the showpiece Orange County dispensary in Santa Ana. Captor Capital is currently looking at additional revenue generating investments in the cannabis space and will be updating the market in due course.
Gavin Davidson, Communications
Captor Capital Corp.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains or refers to forward-looking information, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to availability of investment opportunities, economic circumstances, market fluctuations and uncertainties, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, and the other risks involved in the investment industry and junior capital markets. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.