GSRX Industries Inc., through its subsidiaries, engages in operating retail dispensaries related to the cannabis industry in Puerto Rico and California.
In Puerto Rico, the company’s medicinal cannabis dispensaries operate under the name ‘Green Spirit RX’ and its dispensary in California, located in Point Arena, Mendocino County, operates under the name ‘The Green Room’.
Puerto Rico Operations
As of December 31, 2019, the company had acquired all of the legal rights, permits, pre-qualified li...
GSRX Industries Inc., through its subsidiaries, engages in operating retail dispensaries related to the cannabis industry in Puerto Rico and California.
In Puerto Rico, the company’s medicinal cannabis dispensaries operate under the name ‘Green Spirit RX’ and its dispensary in California, located in Point Arena, Mendocino County, operates under the name ‘The Green Room’.
Puerto Rico Operations
As of December 31, 2019, the company had acquired all of the legal rights, permits, pre-qualified licenses, leasing contracts and assets pertaining to eight medical cannabis dispensaries in Puerto Rico, five of which are in operation.
As of December 31, 2019, the Isla Verde location has passed the final inspection but the company is waiting for the Cannabis Board to grant the license to open; construction has been completed on the Bayamón and Guaynabo locations and it is waiting for the permits of use to apply for final inspection from the Cannabis Board.
In October 2019, the company sold real estate in Puerto Rico.
In May 2020, the company entered into an option agreement (the ‘Option Agreement’) with a royalty right with Natural Ventures PR, LLC (NVPR), 80% owned NVPR to acquire 100% of the issued and outstanding membership interest of its wholly-owned subsidiary, Project 1493, LLC (the ‘1493 Membership Interest’). 1493 Membership Interest holds all of operating and issued Puerto Rican dispensaries and cannabis licenses.
California Operations
The Green Room
In March 2018, Green Spirit Mendocino, LLC (Mendocino) entered into an asset purchase agreement with a third-party seller, pursuant to which Mendocino acquired all of the assets relating to a retail cannabis business in Point Arena, Mendocino County, California.
In March 2018, Mendocino was granted the local permit to operate by the City of Point Arena. In May 2020, Mendocino received its State of California permit to operate its adult use and recreational cannabis dispensary.
As of December 31, 2019, the retail dispensary was available for adult use sales in addition to medical cannabis. Featuring strains grown locally and products only found in this location, various customers have made The Green Room a destination place. Coupled with the company’s plans in establishing new cultivation and manufacturing operations through its other subsidiaries, the company intends to increase product offerings by producing product lines and branded items solely for purchase at The Green Room.
Spirulinex, LLC (Spirulinex)
As of March 7, 2019, the company terminated funding the operations of Spirulinex. As of, the company is in process of dissolving the LLC.
Sunset Connect Oakland, LLC (Sunset)
As of April 16, 2019, the company terminated funding the operations of Sunset. As of December 31, 2019, the company is in process of dissolving the LLC.
GS Essentials
As of April 16, 2019, the company terminated funding the operations of GS Essentials. As of December 31, 2019, the company is in process of dissolving the LLC.
Point Arena Distribution and Manufacturing
In February 2019, Point Arena Manufacturing, LLC (PAM) and Point Arena Distribution, LLC (PAD) entered into an operating lease for a 600 square foot building at 165 Main Street, Point Arena, California for five years beginning March 1, 2019 and ending February 28, 2024, for the purpose of manufacturing and distributing cannabis products. The lease has one five-year option. As of December 31, 2019, the building is under construction.
PAM is intended to manufacture cannabis oil through the Type-6, non-volatile manufacturing process. The oil would then be self-distributed, through PAD, to licensees to sell as-is, or infused with other approved products, such as food and ointments.
PAD is intended to able to purchase and sell the cannabis products manufactured by PAM, arrange for testing of the products and conduct quality assurance review of packaging and labeling. PAD might also arrange for transportation of the products between licensees. PAD would be the sole distributor for PAM.
Cannabidiol (CBD) Operation
Pure and Natural LLC (PaN)
In October 2018, the company formed PaN as a wholly-owned subsidiary of the company, for the purpose of selling its CBD products on line through its website ‘getpureandnatural.com’.
PaN has entered into four strategic agreements to assist in promoting and bringing brand awareness to the Pure and Natural name. PaN has entered into the following agreements: In February 2019 PaN and BYB Extreme Fighting Series, LLC (BYB) entered into a sponsorship agreement (Agreement) to sponsor three events of the BYB EXTREME Series. PaN would be the ‘Title Sponsor’ and the events would be promoted as the exclusive sponsor for ‘BYB Brawl For It All Presented by GetPureAndNatural.com’, which includes having ‘GetPureAndNatural.com’ on events and broadcasts, the triangle cage and mat, ring cards, advertisements, BYB website, social media posts and would be the official CBD Products of DADA 5000 and BYB Fighting Series; in March 2019, PaN and JCD3 Enterprises, Inc. entered into a sponsorship agreement to sponsor a Musical Artist’s (‘Artist’) 2019 musical tour. The sponsorship terminated December 31, 2019. For consideration given, the Artist would make social media posts, mention PaN in official ‘YouTube’ videos, displays at concerts, make three appearances at the PaN store in Nashville and PaN would have exclusive sponsorship rights for Artist and Artist’s tour dates with respect to its category of products and services; in March 2019, PaN and Buzznog, LLC entered into a Preferred Partner and Advertising Agreement allowing PaN to sell cannibidiol products on Buzznog’s website, mobile applications and platforms. PaN would pay Buzznog 20% of the gross profit margin on all products sold using Buzznog’s sites. The agreement has a term of three years from the moment of its coming into effect; and in February 2019, PaN and Matt Sorum (Sorum) entered into an Endorsement Licensing and Co-Branding Agreement, to develop, market, promote and sell a Sorum Product Line for dietary supplements derived from hemp containing 0% tetrahydrocannabinol (THC). The Agreement is for an initial three year term, beginning February 27, 2019 and ending February 26, 2022. The Agreement was terminated by Sorum on January 24, 2020.
Medical Cannabis Products
The company operates as a service business specializing in the sale of medical cannabis, edibles and paraphernalia, including, oils, lotions, THC pills, vaporizers, rigs, grinders, t-shirts, hats, logo items, and bongs and pipes with vaporizer attachments through its strategically located licensed dispensaries.
CBD Products
The company’s CBD products are made from ‘hemp’, which is defined as ‘the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 THC concentration of not approximately 0.3 percent on a dry weight basis’.
The Company intends to produce and distribute its CBD products in various delivery forms, including gels, tinctures, balms, pain creams, face masks, vape pens and energy packs. Its CBD operations would be completed through PaN through wholesale and online sales through its website ‘getpureandnatural.com’.
In December 2018, PaN entered into an operating lease for retail store at 3100 RR 620 South, Suite 200, Lakeway, Texas for eighty six months beginning May 18, 2019 and ending July 18, 2026. The lease has one five-year option.
In December 2018, Pure and Natural, LLC entered into an operating lease for a kiosk in Governor’s Square Mall, in Clarksville, Tennessee for fifteen months beginning February 1, 2019 and ending April 30, 2020. The kiosk is on a month to month lease. The company began operations at the kiosk on February 9, 2019.
In February 2018, PaN entered into an operating lease for a 2,525 square foot CBD retail store at 2306 West End Avenue, Nashville, Tennessee for five years beginning February 1, 2019 and ending January 31, 2024. The lease has one five-year option.
Target Markets
The company’s target markets are those where states or the U.S. territories have legalized the production and use of cannabis, such as Puerto Rico and California.
History
The company was formerly known as Green Spirit Industries Inc. and changed its name to GSRX Industries Inc. in 2018.
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