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Goodness Growth Holdings and Grown Rogue International Complete Warrant Issuance

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Goodness Growth Holdings and Grown Rogue International Complete Warrant Issuance

Goodness Growth Holdings, Inc. ("Goodness Growth") and Grown Rogue International, Inc. ("Grown Rogue") have successfully completed the issuance of warrants to purchase listed shares, as previously announced on May 25, 2023. This issuance was part of a strategic agreement between the two companies, where Grown Rogue supports Goodness Growth in optimizing its cannabis flower products, with a focus on improving quality and yield in Minnesota and Maryland. On October 5, 2023, Goodness Growth issued 10,000,000 warrants to purchase subordinate voting shares to Grown Rogue, while Grown Rogue issued 8,500,000 warrants to purchase shares to Goodness Growth. These warrants have a strike price representing a 25.0 percent premium to the 10-day volume weighted average price of each company's shares prior to the effective date of the Agreement. The warrants have a five-year term to exercise and are subject to a four-month and one-day hold period under applicable Canadian securities laws. They may not be registered with the United States Securities & Exchange Commission or qualified by any Canadian provincial securities commission. Goodness Growth Holdings, Inc. is a cannabis company focused on providing safe access, quality products, and value to customers while supporting local communities through participation and restorative justice programs. Grown Rogue International, Inc. is a craft cannabis company known for premium flower and flower-derived products at fair prices. Please note that forward-looking statements have been made in this news release, and readers should carefully consider the risks and uncertainties associated with these statements. The actual results may differ materially from the forward-looking information provided. For a detailed discussion of the risks, please refer to the Annual Reports of both companies.

Impact of Warrant Issuance on New Businesses

The recent completion of warrant issuance by Goodness Growth Holdings and Grown Rogue International could serve as a valuable lesson for new businesses. The strategic agreement between these two companies, which led to the issuance of warrants, demonstrates the potential benefits of forming strategic partnerships in the business world. For new businesses, this could mean seeking out partnerships that enhance their product offerings or improve their operational efficiency. In this case, Grown Rogue's support in optimizing Goodness Growth's cannabis flower products exemplifies how collaboration can lead to product enhancement. The issuance of warrants, which are rights to purchase shares at a future date, can also be an effective way for businesses to raise capital. This can be particularly beneficial for new businesses, which often face capital constraints. However, it's important to note that such financial instruments come with their own set of risks and regulations. As seen in this instance, the warrants are subject to specific hold periods under Canadian securities laws and cannot be registered with the U.S. Securities & Exchange Commission. Therefore, while the strategic partnership and warrant issuance between Goodness Growth and Grown Rogue offer potential benefits, new businesses must also carefully consider the associated risks and legal implications.
Story First Published at: https://financialpost.com/globe-newswire/goodness-growth-holdings-and-grown-rogue-international-announce-the-completed-issuance-of-warrants
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