CINV), announces the completion of a reverse merger with Eco Equity, a medical cannabis operator in Zimbabwe, Africa

Critical Innovations Inc.

Critical Innovations Inc.

LAS VEGAS, NV, October 26, 2022 (GLOBE NEWSWIRE) — Crucial Innovations Corp (OTC: CINV), a Nevada company, announced today that it has completed its previously announced reverse merger by acquiring certain medical cannabis operations in Zimbabwe, Africa from Shareholders including JPD Capital PCC which is a Guernsey investment fund with multiple investments in the medical cannabis sector in Africa and the UK

JPD Capital has agreed with CINV, unlike its operations in Zimbabwe Africa, to CINV, these operations are operated through its subsidiary Eco Equity (Pty) Ltd, and the transaction was completed with Eco Equity Pty Limited which is now a wholly owned subsidiary of CINV.

The Eco Equity reverse merger is valued at US$210,000,000 and was completed on the basis of the full acquisition payments of Eco Equity Zimbabwe (Pty) Limited with all medical cannabis cultivation assets, this being the same value placed on the business by Baker Tilly International in The original assessment of Zimbabwe’s business.

About Equity Zimbabwe Limited

ECO’s facilities in Zimbabwe will include a fully licensed 16,500 sq m multi-tunnel greenhouse, 450 sq m R&D facility for genetics research and an on-site fireplace providing sufficient power to service all operations; The company is also preparing to build a modern, fully computerized 20,800 square meter glass greenhouse that is GACP/EU-GMP certified. The planting site covers an area of ​​24,000 square meters, and the 14,000 square meter post-harvest facility houses extraction equipment and bagging machines. The ECO will operate at an expected annual production rate of 15,470 kg of THC cannabis flower and 1,591 kg of distillate oil; Management expects to continue expanding ECO operations to meet growing demand and expects ECO to report first production sales by the third quarter of 2023 and expects cash flow to be positive in 2024.

Completion of the reverse acquisition of CINV by Eco Equity Zimbabwe means that Eco Equity Pty Limited Zimbabwe is now a wholly owned subsidiary of publicly traded CINV.

“This is an important milestone in the evolution of Eco Equity and the growing global cannabis industry,” said JP Doran, co-founder and CEO of JPD. “We will be the first cannabis producer in Africa only to be publicly traded in the USA market, for nearly three years we have been at the forefront of the medical cannabis industry, positioning ourselves in a potentially dominant position with our low-cost production model. Focusing on the genetics of cannabis for purposes medical.

“Reverse merger gives us the opportunity to accelerate our growth trajectory and will enable us to establish ourselves as one of the most progressive cannabis companies in the world.

“We had a commitment to our investors, and I am delighted that we executed this transaction to provide a successful liquidity event and give our investor ample scope for further upside.

As part of the original merger agreement, CINV agreed to conduct a private placement under Regulation D 506 in the United States of America and to foreign investors under Regulation S, to raise $25,000,000 at a price of $5.00 per share. Reverse merge. The Company intends to pursue this initial capital increase with a REG A offering of $65,000,000 in the first quarter of 2023, subject to all required regulatory filings.

Completion of the reverse merger is subject to certain conditions, including CINV, filing on 30 September 10 Q and being currently with SEC Filings and Eco Equity Zimbabwe (Pty) Limited submitting their audited financial statements for the end of 2021.

Safe Harbor Statement: This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934; It is subject to the Safe Harbor Act established by those divisions. This material contains statements about expected future events and/or financial results of a forward-looking nature and is therefore by definition subject to risks and uncertainties.

Contact:
John Paul Doran, CEO
E-mail: jpdoran@eco-equity.com

Source: Crucial Innovations Corp
Courtesy of John Paul Doran, CEO

For more information, see www.eco-equity.com

Leave a Comment