Toronto, Ontario–(Newsfile Corp. – June 17, 2022) – High Fusion Inc. (CSE: FUZN) (“High Fusion” or the “Company”) is pleased to announce that it has signed an agreement to sell its San Diego Natural dispensary in Escondido, California (“SDN”). In addition, the Company has agreed to enter into a one-year, secured loan facility in the principal amount of US$400,000 (“Second Loan Facility”).
As part of the acquisition of the business of OutCo Labs in 2021, the Company acquired SDN, a medical dispensary, which subsequently obtained its recreational licence from the county in November 2021. The sale of SDN, if completed, will provide funding and allow the Company to focus on its branded manufacturing and retail dispensary in El Cajon California.
The agreement for the sale of SDN was signed on May 31, 2022 and provides for a US$1.6 million, all cash, purchase price and is expected to close next month.
As a means of funding the Company to completion of the SDN sale, the Company has secured two bridge loans, the first of which was announced on March 14, 2022, in the amount of US$472,500. The Second Loan Facility which closed on June 13, 2022 is comprised of three tranches, representing a total