Sunniva Inc. Agrees To Sell Its Okanagan Falls Property To CannaPharmaRx, Inc. for CAD $20 Million

June 12, 2019

Transaction is Subject to Financial Audit and Satisfaction of Other Conditions

VANCOUVER, BC / ACCESSWIRE / June 12, 2019 / Sunniva Inc. ("Sunniva") (SNN; SNNVF) and CannaPharmaRx, Inc. ("CannaPharmaRx") (OTC PINK: CPMD) are pleased to announce that they have entered into a share purchase agreement dated June 11, 2019, pursuant to which Sunniva has agreed to sell Sunniva Medical Inc. ("SMI") to CannaPharmaRx in an all-cash transaction for CAD $20 million less certain outstanding liabilities in SMI, including the mortgage on the property. Net proceeds payable to Sunniva are anticipated to be approximately CAD $15.5 million. Closing is anticipated to occur on or around July 5, 2019. Effectiveness of the agreement is subject to certain closing conditions including completion of a financial audit of SMI and receipt of sufficient financing by the Purchaser.

SMI owns the Sunniva Canada Campus, which includes construction assets for a planned 759,000 square foot greenhouse located on an approximately 114-acre property in Okanagan Falls, British Columbia.

"The sale of SMI is in line with our previously announced strategy of evaluating strategic alternatives for our operations in Canada," said Dr. Anthony Holler, CEO of Sunniva Inc. "Sunniva is focused on the advancement of our California assets and expanding our sales and distribution infrastructure in the state to support our continued growth in this rapidly evolving market. The disposition of the Okanagan Falls property is part of this strategy as we are directing our efforts and capital resources towards the completion of the Cathedral City facility and the ongoing development of our cannabis brands in California."

Dominic Colvin, the CEO of CannaPharmaRx stated, "We are excited to have reached an agreement to purchase this property from Sunniva. The acquisition and development of the Okanagan Falls property, combined with our Hanover, Ontario property and ownership interest in GN Ventures Ltd., sets the stage for the next step in CannaPharmaRx's growth strategy to become a significant player in the Canadian cannabis industry while continuing to strive to maximize shareholder value."

For more information on Sunniva please visit www.sunniva.com.

For more information on CannaPharmaRx please visit www.CannaPharmaRx.com.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Sunniva, Inc.

Sunniva, through its subsidiaries, is a vertically integrated cannabis company operating in the world's two largest cannabis markets - California and Canada. In Canada, Sunniva's wholly owned subsidiary NHS operates medical cannabis clinics that provide educational and clinical services to patients. In California, Sunniva is focused on creating sustainable premium cannabis brands supported by our large-scale, purpose-built cGMP designed greenhouse and extraction facilities. We offer a steadfast commitment to safety and quality assurance providing cannabis products free from pesticides, which positions Sunniva in California as a leading provider of safe, high quality, reproducible products at scale. Through production from Phase One of our strategically positioned 325,000 square foot high technology greenhouse which is nearing completion and our fully operational Extraction Facility in California, we are launching Sunniva branded products in various product categories and price points including flower, pre-rolls, vape cartridges and premium concentrates. Sunniva branded products will be showcased within our flagship dispensary to be located at the greenhouse and our in-house marketing and distribution team will strive to ensure the placement of Sunniva branded products at licensed dispensaries throughout the state. Sunniva's management and board of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech industries.

About CannaPharmaRx, Inc.

CannaPharmaRx is focused on the acquisition and development of state-of-the-art cannabis grow facilities located in Canada. CPMD has recently completed an initial acquisition of a 48,500 square foot cannabis grow facility presently under development and is currently in discussion with other companies regarding potential acquisitions or business combinations. CannaPharmaRx's business strategy is to become a leader in high quality and low-cost production of cannabis in Canada through the development, acquisition and enhancement of existing facilities. CannaPharmaRx is presently targeting acquisitions of companies in the final stages of obtaining cannabis licensee applications or those which are nearing revenue generation. CannaPharmaRx is committed to operating high quality facilities utilizing the latest technology in combined heat and power generation to ensure being a low-cost producer of cannabis. CannaPharmaRx is in the process of completing an application to list its common stock on the Canadian Stock Exchange with initial trading anticipated to being during the second quarter of 2019.


Forward Looking Statements (with respect to Sunniva)

This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding Sunniva's operations and growth opportunities, Sunniva's plans to launch Sunniva-branded products in various product categories including high quality distillate, premium concentrates, vape cartridges, flower, pre-rolls, and beverages, which will be showcased within Sunniva's flagship dispensary, the placement of Sunniva-branded products at licensed dispensaries throughout California, and statements regarding the anticipated closing date of the sale of SMI, the closing conditions of such sale, and the net proceeds to be obtained therefrom are "forward-looking statements." Forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the risk factors included in the Sunniva's continuous disclosure documents available on www.sedar.com. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although Sunniva has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Sunniva assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.

Safe Harbor Statement (with respect to CannaPharmaRx)

This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by CannaPharmaRx with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, CannaPharmaRx may not be able to sustain growth or achieve profitability based upon many factors including, but not limited to, general stock market conditions. Reference is hereby made to cautionary statements set forth in the company's most recent SEC filings. We have incurred and will continue to incur significant expenses in our expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time.

Company Contacts:
Sunniva Inc.
Dr. Anthony Holler
Chairman and Chief Executive Officer
Phone: (866) 786-6482
Sunniva Investor Contact:
Phil Carlson / Erika Kay
KCSA Strategic Communications
Phone: (212) 896-1233
Email: pcarlson@kcsa.com / ekay@kcsa.com
Sunniva Media Contact:
Katelyn Tumino / Tony Forde
KCSA Strategic Communications
Phone: (212) 896-1252
Email: ktumino@kcsa.com / tforde@kcsa.com

SOURCE: Cannapharmarx, Inc.

View source version on accesswire.com:
https://www.accesswire.com/548573/Sunniva-Inc-Agrees-To-Sell-Its-Okanagan-Falls-Property-To-CannaPharmaRx-Inc-for-CAD-20-Million

VC Funding: Turning it Down Might Be Good for Your Business

Why Not Getting VC Funding Might Be Better for Your Business

Here's why lifestyle businesses appeal to so many entrepreneurs.

From Entrepreneur.com by Jim Price, Nov. 6, 2018

When I started teaching a new venture creation elective to MBAs 15 years and over 2,000 students ago, I'd tell my student teams they each had to come up with -- and develop a compelling plan for -- a (theoretically) VC-backable startup concept. Made sense, right? MBAs wanted to be part of building the Next Big Thing, and venture capital-backed startups had driven a massive tech boom over the prior decade -- a wave I'd been lucky enough to ride.

But, it didn't take me long to ease up on that "it's gotta be VC-backable" requirement. Looking back, I had three reasons for that shift:

Startup lessons tend to apply across the board: First, folks immersed in the action-based learning exercise of mapping out a startup consistently reported back, after reentering the workforce, that they were able to apply those learnings and frameworks to almost any entrepreneurial -- or intrapreneurial -- experience in their careers.

Many people find low-tech businesses more appealing: Second, a lot of teams would come up with quite interesting but low-tech startup ideas. As I discussed in my recent article, "Who Would Invest in Your Startup, and Why?," low-tech businesses rarely represent interesting investments to VCs, primarily because of low valuation multiples (often due to limited growth upside).

A vanishingly small proportion of all startups raise VC financing: Finally, I looked at the numbers and realized that most startups -- indeed, even most very successful startups -- do not raise money from venture capitalists. According to statistics from the U.S. Census Bureau, 2017 saw approximately 556,000 business applications from corporations (what they call CBAs) in the U.S. (That's only about 18 percent of all new business applications, to make sure we're not counting sole proprietorships, two- to three-person professional services practices, and so on.) Meanwhile, Venture Monitor data from PitchBook and the National Venture Capital Association tells us that, during the same period, U.S. "first financings" from VCs (as opposed to follow-on financings) numbered 2,676, or less than one-half of 1 percent of new corporations started. Now granted, first financings from VCs will tend to occur one to three years after a company first incorporates, but the statistics year-to-year are similar enough that the proportionality doesn't change in a meaningful way.

But, what I teach and how I teach it completely aside, my real "a-ha" has been a growing appreciation for non-VC-backable startups and how they can represent a genuinely appealing path for many entrepreneurs. Let's look at the positive side of the ledger for so-called lifestyle businesses:

Ownership and control
Raising equity financing from VCs -- or, for that matter, angels -- comes with a downside that few talk about: pressure to achieve a liquity event (sale of the company or IPO) within a fairly short time horizon (we're talking three to six years, typically). Since your company needs to be pretty massive to go public, we're really talking about pressure to sell the company. If you don't raise equity financing, you're in far better control of your own destiny. If you're in a reasonably protected niche, you've got the luxury of time to grow at a more leisurely pace. It's also up to you as to whether you want a board or directors and/or advisory board, and whom you want to invite to join.

Less dependency and greater chances of success
On the one hand, you'll need to fund your lifestyle businesses through savings, credit cards, friend-and-family loans, bank lines of credit, small business loans and the like. And while it may sound sexier to load up on lots of VC rocket fuel for your startup, as we've discussed, that funding path assumes you'll be one of the select few who's successful in attracting VC investment, and it comes with outside pressure to "go big or go home" and sell the company. So in general, you can think of well-crafted lifestyle businesses as being lower upside, but also lower risk. Taking the lifestyle business route, you stand a higher chance of getting airborne and achieving some level of success.

More options in life
If you own and control the business, you can decide the degree to which you choose to grow it aggressively to maximize cash flow or wealth, versus taking a more casual approach. Perhaps you'll decide to build the business to a certain plateau and then simply manage it for free cash flow that makes work an option. And, building a lifestyle business in this fashion by no means precludes eventually selling the company if you choose -- or, alternatively, handing it down to your kids some day.

You can still leverage technology.
Whereas a lot of lifestyle businesses are low-tech in nature, increasingly, we're finding that even those entrepreneurs are creatively leveraging technology to successfully launch, grow and become more profitable. Social media campaigns, search-optimized websites, customer newsletters and referral networks can all play a crucial role. And behind the scenes, smart lifestyle entrepreneurs are exercising the muscle of low-cost, online tools for everything from brand management to accounting and finance, inventory control, customer relationship management, point-of-sale tools and HR management.

Building a VC-backed startup can be bracing and both personally and financially rewarding. Been there, got the t-shirt. But, nobody's going to feel sorry for you if you get your lifestyle startup to the point where you've created life options such as hiring a general manager and calling in from the lake house a couple of times a week to check in.

Source:  https://www.entrepreneur.com/article/322417

Startup Capital: The NYC Venture Capital News Digest: 9/17/18

The NYC Venture Capital News Digest: 9/17/18

From Alleywatch.com

According to a recent SEC filing, Contour Venture Partners has submitted the paperwork for its second opportunity fund. The filing indicates the offering is for $50M and nothing has closed yet.

According to a recent SEC filing, alpha4 Ventures, a fund focused on investing in Latin America, has held its first close for its first fund at $10M. The total offering is for $40M according to the filing and the filing indicates that there were 14 participants in this tranche. alpha4 Ventures is led by General Partners Eduaro Castro-Wright (previous Vice Chariman of Walmart) and Sebastian Castro Galnares.

alpha4 Ventures

$10M - Fund I

According to a recent SEC filing, coworking space Company (which was previously known as Grand Central Tech), has had its first close for its first fund at $9.16M.

Company

$9.16M - Fund I

The full offering amount is for $60M. The filing indicates that there were 21 parties that participated in this tranche.

Source:

https://www.alleywatch.com/2018/09/the-nyc-venture-capital-news-digest-9-17-18/

Blockchain Startups Have an Exciting Future

What awaits blockchain startups?

While the cryptocommunity is busy worrying over the cryptocurrency market crash and another Bitcoin price drop, the ICO market … keeps growing.

From Medium by Alex Stargame August 21, 2018

2018 has become a record year in terms of the volume of ICO investments. According to a report by ICOrating, the ICO market has almost doubled in the last few years. What is more important is that this is happening against the background of depressing statistics of failing startups and cryptocurrencies being traded on stock exchanges, but not backed by working products.

In total, the ICOs of 2018 have already attracted about $11,7 billion of investment, which is 10 times more than the funds raised by ICOs for the first half of 2017.

Jeffrey Tucker, the editorial director of the American Institute for Economic Research, considers that, despite the considerable number of unsuccessful projects, the ICO market is fine:

“It does not look like a dead market to me. It’s true, half of new ICOs could not collect more than $100 thousand in the second quarter. But it speaks about the decrease in the quality of listings. For those who observed this sector for several years, there is nothing surprising in it. The market with no entry barriers will attract … well, practically everybody”, — Jeffrey Tucker states.

The appearance of a considerable quantity of insitutional investors is a distinctive feature of the ICO market in 2018. In 2018, the first national cryptocurrency has been launched and large companies have started to invest in blockchain projects.

The number of projects raising funds through an ICO has increased by 11 %, however, less than half of them have managed to conduct a successful crowdfunding campaign.

In comparison with the ICO boom of 2017, the average duration of a crowdfunding campaign has grown and now equals approximately 63 days. Only three projects in 2018 managed to finish their campaigns within one day.

Actually, now many analysts look at the ICO market much more optimistically than even three months ago. At the beginning of the year investors became much more cautious investing in ICOs, and even three months ago it was possible for projects to attract investments only through private token sales (according to ICOrating, the average number of investors per token in 2018 is only 7,871).

Despite the toughening of requirements for ICOs, more than half of startups are still launched in North America. The second place is taken by Singapore, then Great Britain and Switzerland. This, despite the growth of interest to cryptocurrencies in developing countries like Venezuela and Turkey.

Jeffrey Tucker thinks that the investors’ pessimism is connected with the fact that the community, which developed in 2017, has got used to gaining fast and big profits from ICO projects. But the market of venture investments does not work so quickly. And it is O.K. if a project does not bring profit during the first half of the year.

A curious tendency — 2018 has become a boom for games on blockchain. I don’t mean only the traditional “collection” projects like CryptoKitties, but also indie- and video games, where developers have started to introduce blockchain technologies. Let alone a considerable quantity of game platforms and casinos on blockchain.

As computer games are one of the most rapidly developing and promising spheres, we can hope for a new boom of blockchain startups and the growth of investors’ interest to ICOs.

Source: https://cryptocurrencyhub.io/what-awaits-blockchain-startups-b242295aa42d

Traditional VC Funding Disrupted by Token Equity

This Berlin Startup is Disrupting Traditional VC Funding Through Tokenized Equity

Article from Rebecca Campbell at NewsBTC.com
July 30, 2018

Traditional venture capital (VC) funding is often plagued with long and complicated processes, making it difficult for company founders to connect with investors.

For one company, that is creating the world’s first decentralized stock exchange in conjunction with Binance and the Malta Stock Exchange, it doesn’t have to be that way. Berlin-based Neufund is an Ethereum-based protocol for securities’ tokenization and issuance. It allows any type of financial asset to be tokenized and liquidized. It’s also aiming to bring disruption to the traditional VC markets.

Speaking to NewsBTC, Zoe Adamovicz, CEO and co-founder of Neufund, knows firsthand how hard it is to find and close investments. As an experienced entrepreneur and angel investor, Adamovicz decided to found Neufund with fellow founder and CTO, Marcin Rudolf, to allow startups, small and medium-sized businesses, and established companies to legally issue a new concept of asset ownership: tokenised equity.

Under German jurisdiction, the platform provides organisations with a legal and technical framework to conduct fully legal and safe equity token offerings (ETOs). Disrupting traditional VC funding, Neufund is doing things faster, easier, and bringing the necessary liquidity needed.

“We are a team of regulatory and blockchain experts, on a mission to change the way projects are funded,” Adamovicz said. “Our ultimate goal is to open creativity for good. We want to empower people all around the world, making it possible for them to pursue their projects and dreams.”

Neufund has announced the first six companies that will be conducting their ETOs with them: Brille24, an eyewear pioneer, Uniti, a Swedish electric car startup, Next Big Thing, a startup incubator for the Internet of Things (IoT) and blockchain ventures, mySwooop, an omni-channel re-commerce platform that buys and sells new and used electronics, Blockstate, a company creating products for the future of finance, and Emflux Motors, an electric superbike company.

It is these ETOs that are looked at as offering a new era of legal and secure ICOs. According to Neufund, equity tokens, serving as equity instruments, empower those with limited investing capital to use fractional ownership as a means of investing.

According to Adamovicz, a form of universal token that is able to represent real-world business will replace utility tokens as investment instruments. She believes it is only then that “the investor’s and issuer’s incentives can be aligned and economic models can be mathematically consistent.”

She adds that ordinary shares will be replaced with some form of programmable shares or technologically enhanced shares. Consequently, she believes that “security tokens will replace both the shares used in today’s financial world, and the utility tokens used in ICOs.”

Creating the First Decentralized Stock Exchange

Earlier this month, the equity fundraising platform announced that it was collaborating with MSX, an innovation vehicle of the Malta Stock Exchange, and Binance, one of the world’s largest cryptocurrency exchanges.

The aim is to create a regulated and decentralised global stock exchange for listing and trading tokenised securities alongside of crypto assets. With market equity tokens projected to reach $1 trillion by 2020, the partnerships will make it possible for companies to trade their equity in a legally-binding way on the biggest crypto exchange in the world, said Adamovicz. She adds that liquidity is one of the major values of equity tokens versus traditional investment assets.

“We aim to bring access to [an] international community of investors gathered around Binance, and thanks to MSE all trades will be secured with proper licenses,” she said.

Source:
https://www.newsbtc.com/2018/07/30/this-berlin-startup-is-disrupting-traditional-vc-funding-through-tokenised-equity/