Origin House (CNSX:OH) entered into letter of intent to acquire certain business assets of Cub City LLC for approximately $7 million on December 4, 2018. The consideration to be paid will include: (i) forgiveness of the principal and interest accrued under the loan (described hereafter), (ii) $3.53 million less the loan balance, in immediately available funds on closing date and (iii) $3.5 million on one-year anniversary of the closing date. Cub City will have the option to receive the second payment in cash, shares of Origin House, or a combination of both but not less than 50% in shares. Some of the key assets, among others, to be purchased in the acquisition include a 20-year lease of the 24,600 sq. ft state-of-the-art craft cultivation facility, a five year local permit to cultivate, process, package and distribute cannabis and two state licenses. Origin House will provide a construction loan facility to Cub City in an amount of up to $1.7 million. Funds advanced under the Loan will bear simple interest at 12% per annum and mature two years from the date of the first advance. The Loan proceeds will be used for construction and equipment for the Facility. In a related transaction, Origin House will acquire membership interests of Drew and Karen Duval in Cub City. Cub City's experienced team will join Origin House, under the supervision of Origin House employees Drew and Karen Duval. On March 28, 2019, Cub City received a Minor Use Permit (“MUP”) from the County of Sonoma. The MUP was approved by a unanimous vote of the Sonoma County Board of Zoning Adjustments. The transaction is expected to close on March 31, 2019. As of April 10, 2019, the transaction is expected to close in second quarter of 2019. As on April 29, 2019, the transaction is expected to close in the coming weeks. Origin House (CNSX:OH) completed the acquisition of certain business assets of Cub City LLC for $5.3 million on May 2, 2019.