Orange, CA, Feb. 23, 2017 (GLOBE NEWSWIRE) -- Supurva Healthcare Group, Inc. (OTC PINK: SPRV), Giorgio Johnson, Interim CEO and President of Supurva Healthcare Group, Inc. is pleased to announce that the Company has agreed to acquire a net revenue interest (the Transaction”), in a Medical Cannabis dispensary with a private Canadian company located in British Columbia. The dispensary has an estimated capital cost of $200,000.00 and is projected to be operational within 60 days of the Closing of the Transaction.
“We are pleased to have been offered this investment opportunity which will provide significant and near term revenue to the Company. We are seeing a steady stream of projects in this rapidly expanding market and will continue to add skilled personnel in the required areas as we continue to acquire and develop opportunities.
SUMMARY OF INDICATIVE TERMS AND CONDITIONS
As currently contemplated, the Transaction is expected to have the terms and conditions summarized below. The terms and conditions are summary in nature and are subject to supplement or amendment prior to the closing of the Transaction upon mutual agreement and will be documented in mutually acceptable transaction documents on the closing date (the “Transaction Documents”).
|Investment: Structure:||Senior Secured Debenture. Supurva will be issued a debenture secured by a senior charge over the current and post-Closing assets of the Dispensary. |
|Principle:||Two Hundred Thousand Dollars ($200,000) US Dollars.|
|Term:||The principle amount of the debenture, calculated after the payment of the coupon, shall be 24 months from the Closing Date.|
|Coupon Rate:||Twelve Percent (12%) per annum.|
|Before Payout Net Revenue Interest:||Before the principle amount of the Debenture is repaid Supurva shall own an 80% net revenue interest in the Dispensary.|
|After Payout Net Revenue Interest:||After the principle amount of the Debenture is repaid Supurva shall own a 49% net revenue interest in the Dispensary.|
|Closing Date:||Closing of the Transaction is expected to occur on the 31st day of March 2017.|
|Conditions precedent to Closing:||Closing is conditioned upon satisfaction of certain conditions to be set forth in the Transaction Documents. The Conditions to closing will be customary for a transaction of this nature, including Supurva obtaining credit and other internal approvals.|
|Documentation:||The Transaction will be evidenced by the Senior Debenture Agreement. Additional Transaction Documents mutually satisfactory to the parties may be required. Any credit documentation shall contain representations, warranties, affirmative and negative covenants and events of default customary for Transactions of this type and other terms deemed appropriate by Supurva.|
|Governing Law:||State of Delaware|
About Supurva Healthcare Group, Inc.
Supurva Healthcare Group, Inc., a Delaware Corporation, is a healthcare holdings company based in Orange, California.
Forward Looking Statement
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks. Supurva Healthcare Group, Inc. is a healthcare holdings company. At the time of this release Supurva Healthcare Group, Inc. lacks the financial capabilities to meet its financial obligations and its management expects to dilute the company's shares to raise the necessary operating capital. Based upon industry standards Supurva would be considered highly speculative and lacks any competitive advantage over its competition. Additional risks you should consider are that this list is limited and additional risk not mentioned may apply: failure to meet Supurva's financial and contractual obligations, Supurva's managerial errors made based upon the Company's limited experience and knowledge of the industry, acts of God and regulatory risk. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements
Giorgio Johnson, Interim CEO/President Supurva Healthcare Group, Inc. firstname.lastname@example.org
Source:Supurva Healthcare Group, Inc.