{"id":417855,"date":"2021-01-20T09:23:16","date_gmt":"2021-01-20T14:23:16","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=417855"},"modified":"2021-01-20T09:23:16","modified_gmt":"2021-01-20T14:23:16","slug":"western-sierra-resource-corporation-announces-funding-asset-and-management-consolidation-agreement-with-global-hemp-group-for-implementation-of-beneficial-use-projects-in-colorado","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/western-sierra-resource-corporation-announces-funding-asset-and-management-consolidation-agreement-with-global-hemp-group-for-implementation-of-beneficial-use-projects-in-colorado\/","title":{"rendered":"Western Sierra Resource Corporation Announces Funding, Asset, and Management Consolidation Agreement With Global Hemp Group for Implementation of Beneficial Use Projects in Colorado"},"content":{"rendered":"
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STEAMBOAT SPRINGS, Col., Jan. 20, 2021 (GLOBE NEWSWIRE) — WESTERN SIERRA RESOURCE CORPORATION (\u201cWSRC\u201d or the \u201cCompany\u201d) OTC: WSRC<\/strong> announces that a binding Letter of Intent for funding, asset, and management consolidation has been executed with GLOBAL HEMP GROUP, INC. (CSE: GHG\/OTC: GBHPF\/FRANKFURT: GHG. Prescient Strategies Group LLC (\u201cPSG\u201d), holder of a majority of the Company\u2019s Preferred Series A Shares, has signed a binding Letter of Intent wherein it has agreed to transfer its Western Sierra Resource Corporation (\u201cWSRC\u201d) Preferred Series A Shares (\u201cWSRC Prefs\u201d) to GHG in a private, third party transaction in exchange for funding to advance WSRC\u2019s water and resource projects under the GHG Corporate umbrella; and to retire WSRC\u2019s secured debt obligations. The resulting acquisition of these WSRC Prefs will effectively give GHG board control of WSRC, and specifically of its strategic water infrastructure assets that will be an integral part of the Company\u2019s Colorado Hemp-Agro Industrial Zone project as originally announced on September 16, 2020. The parties have agreed to develop the project through Innovative Hemp Technologies<\/em>–a wholly owned GHG U.S. subsidiary. The resulting alignment of GHG, WSRC and their respective management teams together under one umbrella will result in a stronger, more focused, and efficient entity.<\/p>\n

As part of the contemplated transaction, GHG is in the process of commissioning updated appraisals on WSRC\u2019s water assets. Documented historical valuations of WSRC\u2019s 4,000-acre feet of water rights and associated infrastructure assets include a 2013 MAI appraisal, 2015 Water Engineer Valuation, and 2017 Water Law Attorney\u2019s Comprehensive Summary of Value, all of which support a value of U.S. $40,000,000 or higher.<\/p>\n

\n Transaction Details:<\/strong>
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Prescient Strategies Group LLC currently holds 19,875,000 of 20,000,000 Series A WSRC Prefs (with Voting Rights of 100 votes per share). On signing of the Definitive Agreement, which is expected to be concluded on or about January 25, 2021, GHG will acquire 11,006,440 unencumbered WSRC Prefs from PSG in exchange for 11,006,440 GHG Preferred B shares (\u201cGHG Prefs\u201d) (the \u201cInitial Issuance\u201d), as more fully outlined below.<\/p>\n

An additional 8,868,560 WSRC Prefs have been pledged as collateral to secure US $3,842,269 in debt financing for WSRC. These encumbered WSRC Prefs will also be acquired by GHG upon restructure\/repayment of WSRC\u2019s existing debt (the \u201cWSRC Debt\u201d) by way of, but not limited to, the consolidation, refinance, or extension of the existing WSRC Debt (the \u201cWSRC Debt Restructuring\u201d). Further to the WSRC Debt Restructuring, the WSRC Debt will have a maturity of a minimum of three (3) years, with the objective of replacing existing notes and releasing the WSRC Prefs as collateral.<\/p>\n

As part of the contemplated transaction, GHG will issue 10,000,000 common share purchase warrants to PSG (the \u201cGHG Warrants\u201d). The GHG Warrants will be exercisable for a period of five (5) years at a price per GHG Warrant of CAD $0.05 per share.<\/p>\n

Conditions Precedent to signing the Definitive Agreement:<\/p>\n