- Grapefruit recently filed a registration statement with the SEC
- The company is one of the earliest registered cannabis distribution firms to attain an annually renewable license
- Following the registration statement, Grapefruit’s second funding tranche is expected to be released this week
California-based Grapefruit Boulevard Investments Inc. (OTCQB: IGNG), a fully licensed premier cannabis manufacturer and distributor in the California legal cannabis marketplace, has filed a registration statement with the SEC on Form S-1 to register shares of the company’s common stock underlying the $600,000 convertible note recently issued to an institutional investor, as well as other securities to be issued to the investor (http://ibn.fm/K86Ke). This filing is an important achievement for Grapefruit in its quest to become a premier cannabis company, boasting quality control and attention to detail from production to distribution.
Headquartered in Los Angeles, California, Grapefruit holds licenses to both manufacture and distribute cannabis products. It also has its own branded product lines. The company is well focused on sourcing only the best-of-the-best raw cannabis materials in its mission to create the highest-quality, most trusted and most consistent recreational and medical cannabis products for its customers.
Despite its booming scale, the cannabis industry is not without its challenges. In 2018, the legal cannabis industry experienced one of its slowest annual expansion rates since Colorado launched the adult-use era in 2014. In California, legal spending on cannabis fell from $3 billion in 2017 to $2.5 billion during the year in which the state implemented an adult-use regulatory regime. A key takeaway from the California market is that highly restrictive regulations and high tax rates may be hurting the legal market’s ability to compete with the illicit market (http://ibn.fm/Gupy0). However, Grapefruit is poised with an industry advantage as one of the few vertically integrated cannabis companies.
Grapefruit holds its State of California provisional licensing from the Bureau of Cannabis Control and the California Department of Public Health. The company is one of the earliest registered distribution companies with the state to have an annually renewable license, as opposed to the temporary licenses previously granted.
The regulatory changes have impacted the ability of new businesses to enter the marketplace and compete with Grapefruit. However, none of Grapefruit’s commercial cannabis businesses have been impacted by the regulatory changes to the marketplace. Grapefruit understands the state’s regulatory burdens and is fully compliant with all applicable laws and regulations.
Now that Grapefruit has filed a registration statement, it is well-positioned to experience significant growth. The investor is required to fund the second tranche of $1.4 million in accordance with the terms of the securities purchase agreement. Grapefruit anticipates that the second tranche will be funded this week.
“The filing of the registration statement is the timely achievement of yet another publicly stated goal of the company,” Grapefruit CEO Bradley J. Yourist stated in a news release. “Moreover, the infusion of an additional $1,400,000.00 of capital will allow IGNG/Grapefruit to, as expeditiously as possible, exploit significant revenue opportunities available to it and to move forward with its business plan as we move inexorably toward our goal of becoming the leading fully integrated, licensed and compliant cannabis product manufacturing and distribution company.”
Yourist concluded, “We are pleased that another important box has been checked on time.”
Grapefruit’s goal is to become a vertically integrated, seed-to-sale cannabis and CBD product company serving the California market. Moreover, the company plans to roll out its product lines in other states, including Nevada, Illinois, Oregon, Colorado and Washington. Grapefruit’s motto – ‘A High You Can Trust’ – embodies its philosophy and ethos, reminding consumers of the company’s commitment to manufacture, procure and distribute only the highest-quality, all-natural cannabis flower, concentrates and products.
Grapefruit Boulevard Investments is a wholly owned subsidiary of Imaging3.
For more information, visit the company’s website at www.GrapefruitBlvd.com
NOTE TO INVESTORS: The latest news and updates relating to IGNG are available in the company’s newsroom at http://ibn.fm/IGNG