Benchmark Botanics Inc (OTCMKTS:BHHKF) Abandons Acquisition Of 51% Stake In 1187349 B.C. Ltd: A Consultant And Employee Receives Stock Options

Benchmark Botanics Inc (OTCMKTS:BHHKF) terminated share purchase accord entered in March 2020 to clinch a 51% stake in Cannabis Research Company – 1187349 B.C. Ltd (7349).

British Colombia based Cannabis Research Company possesses an R&D license received from Health Canada. As per the previous agreement to close the deal on March 4, 2020, Benchmark agreed to issue 563,636 shares to the investors of 7349.

Grants stock options to staff

Benchmark granted 500,000 stock options each at CAD 0.28 to a consultant and an employee. The stock options, which are effective from June 1, 2020, are valid up to May 31, 2025. Option holders need to exercise one-third of the options immediately.

Q1 2020 results

Benchmark reported revenues of CAD 191,095 in Q1 2020 by satisfying the demand for the adult-use market and from the sale of dried cannabis to a licensed manufacturer. It sold 29,587 grams of cannabis in Q1 2020 at CAD 6.46 for each gram.

CEO of Benchmark, William Ying said the company achieved significant growth in Q1 2020 and expects to maintain the same growth trend for the rest of the year to offer rich dividends to the shareholders.

Benchmark hired a talented team to cash in on emerging opportunities and boost profitability. The company prudently adjusted cash and meticulously spending to minimize the impact of coronavirus on its revenues. It is putting in safety measures to safeguard employees and their families while serving the communities and ensuring their wellbeing.

Raises CAD 1.7 million

Benchmark raised funds of CAD 1.7 million through a non-brokered private placement of 3.4 million units at CAD 0.50. It will use the proceeds of the deal for establishing an extraction unit and for general working capital. Following the closing of the issue, the shares will have a holding period of 4 months and one day.

Health Canada grants a license

Potanicals Green Growers Inc., a subsidiary of Benchmark, received a license from Health Canada for additional components in its seed nursery – cultivation site. The company commenced the development of cannabis seeds from genetics. Expertise in cultivation techniques and the combination of high-end cultivars will help the company to stay competitive in the long term.

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