According to available information on CNRP MINING INC (OTCMKTS:CRPGF), up until 2017, the company billed itself as mineral exploration company engaged in the acquisition and exploration of mineral resource properties in Canada. The company claims to be pursuing opportunities in the mineral resource sector; however, the Company is also evaluating opportunities in other sectors to increase shareholder value.
That brings us to our interest in CRPGF. We wouldn’t get excited about a 6 year old exploration company that, as near as we can tell, has never pulled material out of the ground, but we are interested in companies that diversify into a space that we are attracted to, namely cannabis. Through an agreement that has been in the works for several months, the company could be getting ready to do just that.
In a definitive agreement announced a couple of weeks ago, CNRP MINING INC (OTCMKTS:CRPGF) is closing in on a deal to acquire all of the issued and outstanding shares of 1127466 B.C. Ltd. which holds, through a wholly owned subsidiary, a world-wide, exclusive license for X-SPRAYS – a brand of state-of-the-art life-enhancement products administered via an optimal oral spray delivery system.
X-SPRAYS is dedicated to creating the ultimate delivery system for optimal nutrition. The company has focused its efforts in creating a product line of oral sprays to deliver medicines, nutrients and vitamins. To date, X-SPRAYS has developed a novel line of 8 health care and life enhancement nutraceutical products focused on enhancing pain relief, awareness, sleep, libido, energy and recovery. The Company’s product line is ready for commercialization with sprays that include both hemp cannabidiol (CBD) and nutraceutical ingredients (4 with CBD and 4 nutraceutical). X-SPRAYS intends to expand its product line to include cannabis Tetrahydrocannabinol (THC) and CBD sprays.
Pursuant to the terms of the Definitive Agreement, the Company will, upon closing of the Transaction, issue to X-SPRAYS shareholders an aggregate of 16,500,000 common shares in the capital of the Company at a deemed price of CAD$0.30 per Payment Share. Additionally, up to 28,000,000 CNRP shares will be issuable upon certain commercial milestones being achieved by X-SPRAYS. All shares will be subject to escrow conditions and/or resale restrictions as required by applicable securities laws and the policies of the Canadian Securities Exchange.
The Transaction remains subject to certain closing conditions, including, obtaining all necessary approvals, including, approval of the respective boards, the approval of the CSE, and if applicable, shareholders of the Company. (Source: Globe Newswire)
While we have not heard anything further about the status of the transaction, the company is apparently operating as if it will move forward. This week it issued another press release regarding X-SPRAYS, which leads us to believe that approval for the deal is forthcoming.
The company took it upon itself to announce that X-SPRAYS™ has launched a test market for two of its products with a group of Denver, Colorado based medical and recreational marijuana dispensaries. The test market is expected to last three months, after which the Company will provide an update on the sales and performance of the products. The products that will be subject to the test market are: 300mg CBD and Sleep with CBD. (Source: Globe Newswire)
It still remains to be seen if the agreement will lead to a finalized transaction, but with the CBD markets expected to balloon to more than a billion dollars annually within the next couple of years, we’ll keep an eye on any company we find trying to crack into the business, like CRPGF is trying to do now. Stay locked to Street Register for updates, and we’ll deliver important developments on CRPGF as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in CRPGF stock, short or long.