Calgary, Alberta–(Newsfile Corp. – November 12, 2020) – RMMI Corp. (CSE: RMMI) (“RMMI” or the “Company“), a licensed producer and processor under the Cannabis Act (Canada), is pleased to provide a business update with respect to the 2020 harvest of premium hemp flower and biomass in connection with the previously announced strategic alliance and hemp purchase agreement with SynerGenetics Biosciences Inc. (“SG”), a leading plant genetics technology company focused on the development of novel hemp strains with high-CBD content. In addition, the Company announces that it intends to complete a private placement of 10,000,000 common shares (“Common Shares“) in the capital of the Company at an issuance price of $0.20 per share, raising gross proceeds of CDN$2,000,000 (the “Offering“). The Company intends to use the net proceeds to complete the buildout of the expansion area in the Company’s 23,400 square foot extraction and processing facility, to purchase additional high capacity extraction and processing equipment and for general corporate and working capital purposes.

“Following the strategic alliance with SynerGenetics Bioscience (“SG“), we are working together to continue to reach milestones in our collective mission to become the premiere low-cost, high-CBD extraction platform in the Canadian market,” said Peter Cheung, Interim CEO and CFO. “This financing will allow us to complete an expansion of the licenced area in our Brooks-based facility and commercialize our CBD extraction and processing operations at scale.”

Business Update

RMMI is working closely with SG to develop and advance the hemp processing and CBD extraction business. The Company is pleased to provide the following Business Update highlights since announcing the strategic alliance and hemp purchase agreement with SG:

• SG’s British Columbia and Ontario farming partners and in the midst of harvesting SG’s proprietary high-CBD hemp flower and biomass, which is now in various stages of the harvesting and drying process (the “SG Hemp“).

• The SG Hemp has received certificates of analysis (“COAs“) with total CBD content of up to 15%.

• The yield of the SG Hemp is expected to be between 500,000 lbs and 1,000,000 lbs of high-CBD premium flower and de-fibered biomass for the 2020 harvest.

• RMMI expects SG to begin delivery of the SG Hemp beginning in approximately 14 days and it will then be available for RMMI to process and sell as either hemp biomass or CBD concentrates.

• The Company is in active discussion with interested parties on the sale of hemp flower / biomass as well as CBD concentrates.

• RMMI continues with finalizing the renovations of the Health Canada licensed Newell facility to convert it into a large-scale hemp processing operation.

• The equipment required to operationalize the hemp processing facility has either been delivered on site or is ordered for delivery.

The Offering

The Common Shares will be offered and sold in Canadian jurisdictions to “accredited investors” pursuant to the exemption from the prospectus requirement under Section 2.3 of National Instrument 45-106 – Prospectus Exemptions. The Company is also making the Offering available to its existing shareholders or subscribers who receive suitability advice from a registered investment dealer pursuant to various prospectus exemptions in all jurisdictions in Canada. The exemption available to existing shareholders (the “Existing Shareholder Exemption“) is available in Alberta (ASC Rule 45-516), British Columbia (BC Instrument 45-534), Ontario (Section 2.9 of OSC Rule 45-501) and Saskatchewan (General Order 45-926). The exemption available by virtue of receipt of suitability advice from a registered investment dealer (the “Suitability Exemption“) is only available in Alberta (ASC Rule 45-516), British Columbia (BC Instrument 45-536), Saskatchewan (General Order 45-930), Manitoba (Blanket Order 45-503) and New Brunswick (Blanket Order 45-508).

With regard to the Existing Shareholder Exemption, the record date for subscribers who qualify is November 11, 2020 and subscriptions will be accepted by the Company on a “first-come-first-served” basis.

With respect to the Existing Shareholder Exemption and the Suitability Exemption, the Company states that: (i) there is no material fact or material change related to the Company which has not been generally disclosed; (ii) there is no minimum offering amount and the maximum offering is 10,000,000 Common Shares, subject to the overallotment option; and (iii) the estimated distribution of gross proceeds under the Offering would be $500,000 for completion of the expansion area of RMMI’s Newell facility, $650,000 for the purchase of additional high capacity extraction equipment, $750,000 for working capital and $100,000 for transactional costs associated with the Offering including finder’s fees.

Any securities issued under the Offering will be subject to the standard securities legislative hold period of four months plus one day from their issuance date.

The Offering is subject to final acceptance by the Canadian Securities Exchange (the “CSE“).

About RMMI Corp.

RMMI is an Alberta based company whose wholly owned subsidiary, Rocky Mountain Marijuana Inc., is licensed under the Cannabis Act (Canada) to cultivate, produce, process and sell cannabis in various forms. RMMI’s vision is to build a low cost, highly efficient, hemp processing and CBD extraction business focused on serving a premier set of customers in Canada and abroad.

Contact Information:

Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer
[email protected]
403-910-9191

Certain information set forth in this news release contains forward-looking statements or information (“forward-looking statements“). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. All statements in this presentation that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations, and orientations regarding the future, including, without limitation, statements related to the completion of the Offering and the use of the proceeds therefrom. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Forward-looking statements can often be identified by words such as “will”, “plans”, “expects”, “may”, “intends”, “anticipates”, “believes”, ,proposes” or variations of such words including negative variations thereof and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements are based on certain assumptions by management regarding the Company, including, without limitation, investor interest in the Offering and the timing thereof. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The Company can provide no guarantee that it will be successful in completing the Offering. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Trading in the securities of RMMI should be considered highly speculative.

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