RMMI CORP. Announces Proposed Non-brokered Convertible Debenture Financing of up to $4 Million

Calgary, Alberta, August 6, 2019 – RMMI Corp. (“RMMI” or the “Company”) (CSE: RMMI) is pleased to announce a non-brokered offering of 12% unsecured convertible debenture units (the “Convertible Debenture Units”) of RMMI at a price of $1,000 per Convertible Debenture Unit for aggregate gross proceeds of up to $4,000,000 (the “Offering”).  The Offering is intended to provide the Company with capital to complete the remainder of its Newell facility renovations for additional cultivation rooms and equipment, working capital requirements and general corporate purposes.

Each Convertible Debenture Unit will consist of $1,000 principal amount (“Principal Amount”) of convertible debentures (“Convertible Debentures”) with a conversion price of $1.50 (the “Conversion Price”) and 500 warrants (“Warrants”).  Each Warrant will be exercisable to acquire one common share of RMMI (“Common Share”) at an exercise price of $1.50 per Common Share for a period of 36 months following the closing date of the Offering.  If at any time prior to the expiry date of the Warrants, the volume weighted average trading price of the Common Shares on the Canadian Securities Exchange (“CSE”) is greater than $2.50 for 20 consecutive trading days, the Company may, within 15 days of the occurrence of such event, deliver a notice to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice (the “Accelerated Exercise Period”). Any unexercised Warrants shall automatically expire at the end of the Accelerated Exercise Period.

The Convertible Debentures will mature on the date that is 36 months from the closing date of the Offering (the “Maturity Date”) which is expected to be on or about the August 23, 2019. The Convertible Debentures will be convertible at the holder’s option into Common Shares at any time after one year from the closing date.  The Company shall have the right to repay the Convertible Debentures after 18 months from the Closing Date (“Early Pre-Payment”) by providing 30 days notice of the Early Pre-payment, at a price equal to 105% of the Principal Amount of the Convertible Debentures then outstanding, plus accrued and unpaid interest thereon. If at any time prior to the Maturity Date, the volume weighted average trading price of the Common Shares on the CSE is greater than $2.50 for 20 consecutive trading days, the Company may, within 15 days of the occurrence of such event, deliver a notice to the holders of Convertible Debentures that the Company is converting the Convertible Debentures at the Conversion Price on the date that is 30 days following the date of such notice.   

The Convertible Debenture Units 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 and such other exemptions from the prospectus requirements and subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the Canadian Securities Exchange.  In connection with the Offering, RMMI may pay finder’s fees to eligible finders.

 For more information, please visit: www.rmmi.ca

 About RMMI Corp.

 RMMI is an Alberta based company that focuses on the production, cultivation and sale of marijuana in various forms. RMMI, through its wholly-owned subsidiary, Rocky Mountain Marijuana Inc. (“Rocky Mountain”), is a late stage applicant under the Cannabis Act (Canada), having submitted its Evidence Package to Health Canada, as the final step  in the process of obtaining the requisite license to commence cannabis production and operations.  Rocky Mountain blends science with nature, using aeroponic cultivation and CO2 extraction, and intends to produce high-purity, organic-quality cannabis oils. RMMI’s team will employ leading commercially available science and technology to maximize production yields and product quality as a low-cost producer, while reducing risk to its crops and its business.

RMMI Corp.