Greenrise Global Brands Inc. (CNSX:XCX) acquired 51% stake in CannaCare Health GmbH from its co-founders Frank Otto and the Oplesch family (CannaCare Shareholders) for €3.02 million on April 5, 2022. As part of the acquisition, Greenrise will pay 5 million Class A Voting Common Shares as consideration. As additional consideration for the Acquisition, Greenrise made a cash payment of €0.25 million to the CannaCare Shareholders and will acquire a shareholder loan in the principal amount of €0.6 million, plus accrued interest of a €0.048 million from Frank Otto in exchange for an unsecured convertible debenture in the principal amount of €0.648 million, bearing interest at 4% per annum. The principal amount of the Convertible Debenture is convertible into 4,471,200 units of Greenrise, with each unit being comprised of one Common Share and two common share purchase warrants. Furthermore, the CannaCare Shareholders can earn: (i) a maximum aggregate amount of 2,000,000 Common Shares upon attainment of FY2022 sales of €4 million and positive earnings before income; (ii) an additional maximum aggregate amount of 1,500,000 Common Shares upon attainment of FY2023 sales of €10 million and positive earnings before income; and (iii) an additional cash payment in the aggregate amount of €1 million depending on the achievement of certain EBITDA thresholders in FY2022. Greenrise also has the exclusive option to purchase the remaining 49% of CannaCare from the CannaCare Shareholders for two years from the date of closing of the Acquisition. Frank Otto will also be appointed to the board of directors of the Company pending Canadian Securities Exchange approval.

Greenrise Global Brands Inc. (CNSX:XCX) completed the acquisition of 51% stake in CannaCare Health GmbH from its co-founders Frank Otto and the Oplesch family (CannaCare Shareholders) on April 5, 2022.