Weekend Unlimited Strengthens Cash Position Through Sale of Property in Washington, Redirects Capital from Northern Lights Organics to Oklahoma Operations, and responds to OTC inquiry
Vancouver, BC (June 26th, 2020) - Weekend Unlimited Industries Inc. ("Weekend" or the "Company") (CSE: POT - FSE: 0OS2 - OTCQB: WKULF)
Sale of Property in Washington
Weekend is pleased to announce it has strengthened its cash position through the sale of its facility and equipment in Wenatchee, Washington. The transaction was for a total of USD$400,000, with USD$300,000 paid at the completion of the property transfer and the remaining USD$100,000 distributed over 12 consecutive monthly payments commencing in January of 2021.
Weekend purchased this facility in 2018 and from that date it has not served in any active operations for the company. The purchasers will rent the facility to licensed cannabis producers who will formulate Weekend Unlimited Products once the transfer application has been approved to this new address.
“The sale of our Washington facility comes at the right time when this capital can be used to further develop our growing operations in Oklahoma,” said Chris Backus, President and CEO. “The deal we’ve made still allows WKND! brands to have a footprint in Washington. We believe this is the best decision to continue to grow Weekend as a revenue generating company for our investors.”
Reallocation of Capital from Northern Lights Organics to Oklahoma
Weekend’s Executives and Board of Directors have unanimously decided to redirect the 2020 operational budget from Northern Lights Organics to our revenue generating Oklahoma operations.
With a recent surge of biomass production and decrease in biomass price in the Canadian hemp industry, Weekend determined the risk of further pursuing Northern Lights Organics operations this year was not in the best interest of the company and its investors.
The business model to plant, harvest, dry, and transport hemp from 40 acres was projected to exceed Cdn$350,000 while wholesale cost of distillate has significantly decreased as volume floods the market making Weekend’s profitability uncertain.
Additionally, the operational plans to dry harvested biomass called for several employees to work in small enclosed greenhouses with industrial sized dryers circulating air which would be contrary to safe and recommended COVID-19 prevention measures.
“Weekend’s management team strongly believe this is the most strategic decision we could make at this time.” stated Chris Backus, President and CEO. “WKND! And Orchard Heights Cannabis brands are growing dramatically in Oklahoma and we believe our efforts and capital are best allocated to a proven business model that is earning Weekend growing and consistent profits. This decision is a strong positive for the company and we are very excited and optimistic about our growing footprint in Oklahoma.”
“Strengthening our cash position, and re-allocating capital to Oklahoma, could not come at a better time given our recently announced letter of intent with Ruby Maes,” said CEO, Chris Backus. “We are simply making a methodical decision to move cash from a crop commodity asset with several uncertain factors, and place it into Oklahoma operations which is proven by its month-over-month revenue growth to have less risk and more upside”.
Response to OTC Inquiry
Weekend Unlimited provides the following information about its marketing and promotional activities (“Marketing Activities”) at the request of OTC Markets.
On June 22nd, 2020 the Company engaged Emerging Markets Consulting LLC on June 22nd, to assist with promotional marketing to raise the Company profile among investors and email campaigns. Emerging markets wrote an article that made reference to the Company’s previously reported revenue increases and offered additional non-Weekend focused macro projections of the cannabis industry. Specifically, the company confirms that the disclosed revenue numbers in the Emerging Markets article are neither false nor materially misleading and that such statements were accurate and correspond to the Company’s press release issued on June 15th, 2020 which was approved by the Investment Industry Regulatory Organization of Canada (IIROC). With respect to Emerging Market’s overall Cannabis Industry projections the company has no reason to believe those are inaccurate and received assurance from Emerging Markets that such information had been subject to review by Emerging Markets legal council. Although the Emerging Market article disclosed that it was a paid advertisement by Weekend Unlimited, the company has instructed Emerging markets to more clearly identify in the future that their campaigns are paid promotional features funded by the Company and to include the full company name in the headers of all email campaigns. The company does not believe the services provided by Emerging Markets had a direct and significant impact on trading activity on the OTC Company’s stock or the market price thereof. Any increase on trading activity is most likely attributable to the company’s recent and publicly disclosed financial results.
The Company’s management, led by the Company’s CEO, has overseen all Marketing Activities respecting the Company. Since listing on the OTCQB the Company believes it has complied with the OTC Markets Group policies on stock promotion. The Company has been successful in achieving operational milestones for its business, and since completing its initial public offering, it has issued many press releases disclosing these achievements. These press releases form part of the Company’s public disclosure record with the Canadian securities regulators, and are available with the Company’s other public filings under its profile at www.sedar.com.
All Directors, officers and insiders of the Company are required to report their trades by filing insider reports with the Canadian securities regulatory authorities. These reports are available for review at www.sedi.ca. All such trades – including those which have taken place over the past 90 days – have been reported on SEDI in compliance with applicable securities laws. The Company also confirms there is no purchases of the Company’s stock by Third Party Providers over the past 90 days.
The following is a list of all third party providers who have been engaged directly by the Company to provide investor relations services, public relations services, marketing, or other related services including the promotion of the Company or its securities in the last 12 months: Emerging Markets Consulting, Hybrid Financial, Investor News Network, Stockhouse, FYI Communications and Marketing, Whoa is Media, Atkiencheck and Proactive Investors (the “Third Party Providers”). The Company believes that all of its Third Party Providers provide valuable services and contribute to the successful marketing of the Company and its products and services. The Company endeavours to work with the Third Party Providers to ensure all disclosures are made in accordance with OTC Markets’ policies and guidelines on marketing. The Company intends to continue engaging some or all of the Third Party Providers on an ongoing basis.
The Company’s management has been directly involved in engaging and working with the Third Party Providers undertaking Marketing Activities on the Company’s behalf. Approved content is sometimes displayed on media properties owned by companies that do not have a direct relationship with the Company but have been selected by or through Third Party Providers. The Company’s management is often directly involved in the creation of content used in Marketing Activities. The Company’s management makes its best efforts to approve all content about the Company prior to its release, and at no time has the Company approved of any content or made any disclosure that is false or misleading. The Company’s management is not aware of any disclosure respecting the Company that has been made by any Third Party Provider that is false or misleading.
The following is a description of issued shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of issuance. All issuances were priced in accordance with applicable Canadian Stock Exchange policies.
- On April 20, 2020 the company issued 3,348,147 common shares at a price of CAD $0.09 for debt when the closing market price on the day preceding the issuance was CAD $0.12 representing a 25% discount to market. No warrants were granted.
- On July 8, 2019 the Company completed a non-brokered private placement of $1,575,719 (CAD $2,068,415) by the issuance of 4,136,832 units at CAD $0.50. Each unit consists of one common share and one common share purchase warrant entitling the holder to subscribe for one additional share at a price of CAD $1.00 for a period of 2 years. The closing market price on the date of issuance was CAD $1.00. Per communication with the CSE price protection at a price of $0.50 was obtained on June 17, 2019 when the market price was CAD $0.55.
- On February 11, 2020 the Company completed a non-brokered private placement of $831,661 (CAD $1,108,001) by the issuance of 8,864,000 units at CAD $0.125. Each unit consists of one common share and one common share purchase warrant entitling the holder to subscribe for one additional share at a price of CAD $0.17 for a period of 2 years. The closing market price on the date of issuance was CAD $0.22. Per communication with the CSE price protection at a price of $0.125 was obtained on January 22, 2020 when the market price was CAD $0.165
No other shares or convertible instruments have been issued allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of issuance.
About Weekend Unlimited Industries Inc.
Weekend Unlimited is a lifestyle-based cannabis and CBD wellness company. We are developing and launching premium cannabis and CBD brands to deliver life’s highs – any- time, anywhere. Our CBD products are available online and at a retailer near you. Weekend Unlimited is well-positioned to launch and scale the brands that will define cannabis and CBD. Learn more at www.weekendunlimited.com
For further information, please contact:
Mr. Chris Backus, President & CEO, Director Telephone: 1(236) 317-2812
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.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward- looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking infor- mation reflects management's current beliefs and is based on information currently available to management. Of-
ten, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by state- ments to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward- looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic condi- tions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new in- formation, future events, or otherwise, except as required by securities laws.