Bhang Inc. (OTCMKTS:BHNGF) has released corporate updates that include the grant of equity motivation awards to some officers, consultants, and directors as well as divestment of its indirect stake in Red Ace LLC.
Bhang to sell its interest in Red Ace
The company indirectly owns a stake in Red Ace through its wholly-owned subsidiary Bhang Corporation which has completed its interest in Red Ace. The divestment is part of Bhang’s refocusing resources in its main business of cannabis-infused gourmet chocolate products. Bhang Corp finalized the transaction as per a membership interest purchase agreement where it sold, transferred, and assigned 100% of its stake in Red Ace in exchange for $5,000 in gross proceeds. The purchaser will assume all Bhang Corp’s liabilities related to Red Ace.
Also, in connection with this purchase agreement, the company entered a settlement agreement and joint release with Red Ace’s former owner. This is as per the agreement between the parties to release and discharge one another of claims associated with previous business dealings that involve Red Ace. As per the Settlement Agreement, the former owner agreed to transfer all rights, title, and interest of 2,379.122 Bhang voting shares to the company.
Bhang issues equity incentives to its directors and officers
Bhang has granted options for the purchase of 1.3 million of its subordinate voting shares to certain officers and company directors. Of the issued options, 1 million will be exercisable until October 1, 2023, at $0.75 per share and the rest are exercisable until October 1, 2023, at $0.1 per share.
Also, the company, on October 2, 2020, granted 2.75 million of its restricted stock units to some officers, consultants, and directors of the company. After issuance, 1.75 million of the restricted stock units were vested immediately, while the remaining 1 million shale vest on October 2, 2021. After vesting, the underlying subordinate voting shares of the RSU will be issued at $0.075 per share. The company issued the RSUs and Stock Options as per its 2019 Equity Incentive Plan.
 Announces Divestment Of Its Stake In Red Ace And Issues Stock Options to Directors){kind=link}