New Funding Agreement Valued at up to $10 Million
Company Appoints New Independent Director
LAS VEGAS, Sept. 14, 2022 /PRNewswire/ -- One World Products, Inc. (OTCQB: OWPC) (the "Company" and "OWP"), the largest Black-controlled, fully-licensed hemp and cannabis producer in Colombia, today announced that it entered into a common stock purchase agreement and registration rights agreement (together, the "Agreements") with an institutional investor for up to $10 million worth of shares issuable over a 36-month period time, based upon the current market price of the stock at the time. Separately, upon entering into the Agreements, the investor made an initial fixed price equity investment of $150,000, which is subject to Rule 144 and a 6-month holding period. The Company also announced the appointment of a new independent director to its Board of Directors, Terry L. Buffalo.
Isiah Thomas, OWP Chairman and CEO, stated, "This investment into One World Products provides substantial upfront capital that will be used to continue to scale our operations in Columbia, enhance industrial sales of hemp products to customers and expand our carbon credits, and it is in common stock equity at a fixed price. Of note, the common stock equity agreement will provide us additional growth capital to increase our sales and is at our control and discretion in regard to the amounts and timing. We believe this financing is not dilutive to current shareholders and enhances our value by increasing our cash and shareholder equity positions over time. It better positions us toward our capital markets' goal for 2023 of an up list to a major U.S. national exchange. At this time, the Company has yet to decide on any recapitalization structure or timing, as our Board and management continue to believe out stock is undervalued."
Mr. Thomas continued, "We are pleased to partner with this institutional investor that clearly values the vision and tremendous growth potential that we see for OWP. We are confident that this capital structure will support our operational cash flow requirements while providing the flexibility to achieve our growth targets. Of extreme importance to us was the faith and enthusiasm of the investor to provide a $150,000 upfront investment at a fixed equity price and our control over the timing and amounts of future equity capital which allows us to take advantage of sudden increases in our stock price."
Following the initial investment, and subject to the conditions of the Agreements, including that a registration statement is filed and declared effective with the Securities and Exchange Commission the Company has the right, in its sole discretion, to sell up to an additional $10 million worth of shares over a 36-month period. The Company will control the timing and amount of any sales to the investor and the investor is obligated to make purchases in accordance with the Agreements.
There are no upper limits to the price per share the investor may pay to purchase common stock and the purchase price of the shares will be discounted per the agreement based on market prices of the Company's shares at the time of each sale. No warrants, derivatives, financial or business covenants are associated with the Agreements.
Additionally, on September 6, 2022, the Board of Directors of the Company appointed Terry L. Buffalo to serve as an Independent Director of the Company to fill the vacancy caused by Mr. Bruce Raben's resignation. Mr. Buffalo, 57, previously served as the Chief Executive Officer, Chief Financial Officer and a director of American Cannabis Company and is the founder and principal of Buffalo Cannabis Advisors. He has extensive executive experience in private and public sector engagements, primarily overseeing the deployment of multi-billion-dollar asset expansions and ensuring SEC compliance for publicly traded companies.
Mr. Thomas added, "We welcome Mr. Buffalo to our Board of Directors. Terry brings more than 25 years of experience in investment and financial advising and specifically seven plus years of extensive Cannabis Industry expertise to our Company. He joins the Board as an Independent Director, and we are excited about the contributions he will undoubtedly make at OWP. We also thank Mr. Raben for his support of our early-stage growth and wish him well as he leaves to pursue other opportunities."
A more detailed description of the Agreements is set forth in One World Products' Current Reports on Form 8-K as filed with the SEC.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration or qualification under securities laws of any such jurisdiction.
One World Products is the largest Black-controlled, fully licensed hemp and cannabis producer with offices in Las Vegas, Nevada, and offices and operations in Bogota and Popayan, Colombia. One World Products planted its first crop of cannabis in 2018 at its cultivation site in Popayan, Colombia, and began harvesting commercially in the first quarter of 2020.
As an ascendant international hemp and cannabis company focused on environmental, social, and governance (ESG) standards, the recently announced Isiah International/One World Products/AMUNAFRO consortium controls approximately 1.2 million acres of land in Colombia focused on the licensed production of industrial hemp for integration into sustainable, carbon-reducing products made throughout the world. The Company expects to supply its global clients with the highest quality industrial and commercial applications for cannabis, hemp, and hemp products, including derivatives in crude oil, distillate, and isolate forms with industrial-scale production to serve global cannabis and hemp demand. Its products will be produced and tested according to GAP, GMP and ISO standards. For more information, please visit https://oneworldproducts.com/.
Isiah Thomas was inducted into the National Basketball Association (NBA) Hall of Fame in 2000 after spending his entire career with the Detroit Pistons. He was a 12-time NBA All-Star, a two-time NBA champion, the 1990 NBA Finals Most Valuable Player, and named as one of the 50 Greatest Players in NBA History. Today, Mr. Thomas serves as an analyst for NBA TV and is an accomplished and highly respected international business executive and investor. His portfolio of companies was developed through Isiah International, Inc., which invests in companies with strong market positions and growth potential.
Mr. Thomas' business interests include sports and entertainment, real estate, waste management, hemp, cannabis, and a CBD personal products company, among others. In addition, Mr. Thomas has developed a very successful champagne business, Cheurlin Champagnes. He has cultivated excellent relationships with the grower, employees, and the French government. As a result, he now owns the proprietary genetics for the Champagne grapes he produces and has perfected an international import/export system for the global distribution of the product. More information is available at www.isiahinternational.com.
Mr. Thomas previously served on the Chicago Stock Exchange's Board of Governors, was a co-founder of the NBA's Toronto Raptors, Popcorn Indiana, and was a member of the Board of Get-in Chicago, an organization that focused on preventing gang violence in Chicago. He is a Distinguished Alumnus of Indiana University, where he earned his Bachelor of Arts in Criminal Justice. He also received his Master of Education from the University of California at Berkeley.
Ken Dennard / Rick Black
Dennard Lascar Investor Relations
SOURCE One World Products, Inc.