Nevada-based ECGI Holdings Inc. (OTC: ECGI) likewise referred to as Elite Marijuana Team Incorporated is acquiring East West Pharma Team, Inc., a Wyoming company with specific tools and also skilled workers, consisting of leaders in the cannabinoid removal and also item production area. ECGI introduced recently that it had actually authorized an LOI to obtain the business as component of its $ 2.7 billion method to get in the marijuana sector by acquiring troubled possessions. ECGI did not reveal what it spent for the business and also according to the business filings, it just had a cash money equilibrium of $131,849 at the end of Might 2022.
It’s tough to recognize where ECGI is obtaining the cash or possessions to make the procurement. In January the business informed investors it was “once more existing with our economic filings and also our state with OTC Markets Team.” According to the current quarterly declaring finishing 11/30/22, the business had no income and also a bottom line of $116,000. Undoubtedly, it hasn’t reported any kind of income on any kind of filings returning to 2019.
The business did have a share offering dated September 6, 2022 to elevate $1.6 million. That providing declaration cautioned financiers as adheres to, “Since May 31, 2022, the business had possessions completing $4,637,134, responsibilities completing $8,348,331, and also a capital shortage of $7,389,535. The business does not have a background of creating income and also has actually a collected shortage of $10,879,219 since May 31, 2022. The funds increased in this Offering will certainly want on their own to enable the extension of the business as a going issue for the following year.” Actually, the business remains in default on an exchangeable note that returns to 2015. The business has actually not upgraded investors on the offering and also whether any kind of cash was increased and also if so just how much.
Regardless of the absence of openness on where the cash originated from unless it was an all-stock offer, ECGI claims it will certainly obtain removal tools that was customized to refine large quantities of commercial hemp (as much as 500 extra pounds per hr) and also boil down unrefined product with a high-volume fluid to fluid (L2L) procedure developed to produce ideal polished item. The declaration reviewed, “Presuming, outside estimate by CannabisBenchMarks.com’s Feb 3, 2023, outside area cost at $ 417 per extra pound, the tools can refine as much as $ 208,500 of product per hr.”
” This is an essential ability and also possession procurement that will certainly broaden our network of possible financiers with the lead procedures group we obtain as component of the offer,” stated ECGI CHIEF EXECUTIVE OFFICER, Danny Wong recently “East West has considerable understanding and also exclusive technology/processes within the CBD & & eastern medication area, and also we will certainly obtain a significant base of specific tools along with essential workers that consist of leaders in the cannabinoid removal and also item production area.”
Along with the tools, the offer consists of maintaining essential workers, consisting of Dr. Zhihong Zhou, Ph.D., the dean of removal of Yunnan College, Institution of Standard Chinese Medication (TCM). Yunnan College is thought about a leading research study center of TCM in China, and also maybe the leading TCM center on the planet. Stanley Zhang, a professional in marijuana removal and also handling, and also Sam Lai, a designer with a concentrate on liquid-to-liquid removal of marijuana cannabinoids and also production of completed items, will certainly likewise be signing up with ECGI as component of the procurement offer.
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