TORONTO, Nov. 29, 2018 (GLOBE NEWSWIRE) — Lineage Grow Company Ltd. (the “Company” or “Lineage”) (CSE:BUDD) today announced that it has terminated each of a licensing and services agreement and equipment lease agreement (collectively, the “Mt. Baker Agreements”) dated January 31, 2018 with Mt. Baker Greeneries, LLC. (“Mt. Baker”). The Mt. Baker Agreements would have allowed Lineage to assist Mt. Baker in maximizing the efficiency of its cultivation operations at Mt. Bakers facility in Bellingham, Washington. Lineage was saddened to learn that the managing member of Mt. Baker, Mr. Mark Landreth, passed away in early 2018. Accordingly, Mr. Landreth’s passing makes it improbable for Mt. Baker to perform its obligations under the Mt. Agreements. Lineage notified Mt. Baker of the termination of the Mt. Baker Agreements effective as of October 31, 2018.
In addition, Lineage entered into a termination agreement with Quinsam Capital Corp. (“Quinsam”) terminating a proposed purchase by Lineage of Quinsam’s interest in Herbiculture Inc. As consideration for the termination, Lineage will issue 200,000 Lineage common shares to Quinsam at C$0.19 per common share for a total amount of $38,000.
“Lineage completed the acquisition of the Terpene Station dispensaries in Oregon and have entered into agreements with three California based operators,” said Peter Bilodeau, CEO of Lineage. “In addition to running our two dispensaries in Oregon, Lineage is pursuing a proposed reverse take-over with FLRish, Inc. d/b/a Harborside (“Harborside”), operating Harborside brand dispensaries in Oakland and San Jose and a farm in Oakland, a proposed acquisition of Walnut Oaks LLC d/b/a Agris Farms (“Agris Farms”), a producer in Yolo County, California, and a proposed acquisition of Lucrum Enterprises Inc. d/b/a LUX Cannabis Dispensary (“LUX”), a dispensary in San Jose, California. We are now focusing on our Oregon operations and on our proposed California transactions.”