2022-06-20 | CSE:XCX | Press release

HAMBURG, GERMANY, June 20, 2022 /CNW/ – Greenrise Global Brands Inc. (Frankfurt: C4T) (ISIN: CA39540L1085) (CSE: XCX) (“Greenrise”), which operates in the German wellness and medical CBD cannabis market, announces its results for the three months ending March, 31stst2022 (Q1, 2022) and provides an update on the acquisition of CannaCare Health GmbH (“CannaCare”).

Frank OttoDirector of Greenrise and Co-Founder of CannaCare said, “We have seen strong monthly sales growth since the launch of CANOBO and VITALEA in major pharmacies across Germany and anticipate strong sales growth for the remainder of the year as we launch an advertising campaign to support our pharmacy sales.”

Hendrik Knoppdirector of Greenrise, said, “The combination of Greenrise and CannaCare was driven by the legalization of cannabis use by adults. We look forward to the results of the German Narcotics Commissioner’s discussions with a wide range of stakeholders, including drug addiction doctors. , cannabis associations and international experts this month. We believe this will lay the foundation for the government’s legalization strategy, which we hope to see announced this fall.

First Quarter 2022 Highlights

  • The results for the first quarter of 2022 represent the activities of its wholly owned subsidiary, AMP Alternative Medical Products GmbH (“AMP”).
  • Greenrise entered into discussions to acquire CannaCare, which were completed and announced early in the second quarter of 2022.
  • Unaudited sales increased by 26% to €145,462 in the first quarter thanks to the sale of medical cannabis products to pharmacies and distributors in Germanycompared to €115,056 in the first quarter of 2021.
  • Greenrise reduced its fixed cost structure and operational expenses, which led to a 26% decrease in operating losses to €409,619 in the first quarter, compared to €551,852 in the first quarter of 2021.
  • AMP has been appointed distributor and distributor of Little Green Pharma medical cannabis extract oils for the German market, which are also used in Waldhausklinik Deuringen gGmbH, a non-profit acute care hospital for internal medicine, collaborative clinical study with AMP on the efficacy and safety of medical cannabis.
  • AMP and Eurox Pharma GmbH have entered into a non-exclusive agreement for the commercialization and distribution of Dronabinol for the German market.
  • Further information is contained in the financial statements and related MD&A, available on SEDAR (www.sedar.com).

Highlights post-Q1 2022

  • Greenrise has completed the acquisition of a majority stake in CannaCare and will begin to consolidate its financial results in the second quarter of 2022. Greenrise has the exclusive option to acquire the remaining 49% of CannaCare from Mr. Frank Otto and the Oplesch family for the shares of Greenrise until 2024.
  • CannaCare recorded unaudited sales of €184,296 in the first quarter of 2022,
  • CannaCare recorded unaudited sales of €140,904 in April and €240,065 in May due to the launch of CBD products in three major pharmacy chains in Germany At the beginning of April.
  • Greenrise Announces the Closing of the Third Tranche of its Non-Intermediary Private Placement (“Unitary Private Placement”), Raising Gross Proceeds of €250,000 ($340,000 CAD) through the issue of 1,700,000 shares at the subscription price of CA$0.20 per unit. Each Unit consists of one common share of Greenrise (“Common Share”) and two stock warrants, exercisable for one Common Share at an exercise price of CA$0.35 at any time for up to one year and CA$0.50 at any time up to two years after the closing date. All securities issued pursuant to the private placement of Units will be subject to a statutory hold period of four months plus one day from issuance in accordance with applicable securities laws.
  • Greenrise raised total gross proceeds of €525,266 (CA$723,400) in the closings of the first and second tranches of the Private Placement Unit announced on April 4, 2022and April 14, 2022respectively.
  • Greenrise issued an unsecured debenture convertible into 4,201,552 Private Placement Financing Units to Mr. Otto for a principal amount of €608,920.55 (CA$840,310.36)bearing interest at the rate of 2% per annum, with a maturity of December 31, 2024in exchange for a shareholder loan from Mr. Otto to CannaCare.
  • Mr. Frank Ottowhich owns 9% of Greenrise and 18% on a fully diluted basis, was appointed to the board.

About Greenrise Global Brands Inc.

Greenrise is a publicly traded Canadian company that owns 51% of CannaCare Health GmbH, a Hamburg producer and supplier of CBD wellness products and wholly owns AMP Alternative Medical Products GmbH, an Erfurt-based importer and distributor of EU-GMP medical cannabis to pharmacies.

For more information, please visit:

Doctors and pharmacists can find more information at: www.amp-eu.com/doccheck-login

FOLLOW US ON:

Twitter: https://twitter.com/GreenriseGlobal

LinkedIn: https://linkedin.com/company/greenriseglobal/

Instagram: https://www.instagram.com/greenriseglobal/

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

This press release contains forward-looking statements based on the Company’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans and milestones and their calendar. Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Accordingly, actual results may differ materially from those expressed in such forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless the otherwise required by law.

SOURCE Greenrise Global Brands Inc.

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