Grapefruit/GPFT Announces Filing Amendment No. 2 to Registration Statement

Los Angeles & Desert Hot Springs, California, April 27, 2020 (GLOBE NEWSWIRE) -- Grapefruit USA, Inc., a California based cannabis distribution and manufacturing company (OTCPINK “GPFT”) (“Grapefruit” or the “Company”) is announcing today that it filed Amendment No. 2 to its Registration Statement on Form S-1 originally filed on July 28, 2019. The Registration Statement covers shares to be issued to its institutional investor, Auctus Fund, LLC (the “Investor”) of Boston, MA upon conversions of Convertible Notes (the “Notes”) previously issued to Auctus to be converted to GPFT common stock at approximately 95% of Market and upon exercise of callable cash exercise-only Warrants issued by the Company to Auctus when the Notes were originally issued. Upon effectiveness of the registration statement, which the Company expects to be declared effective in mid to late May the Investor is obligated to immediately provide an additional tranche of cash to Grapefruit, and another 90 days later. If all of the Notes are issued and the Warrants called, Grapefruit will have received $10,000,000.00 of proceeds from these financing transactions.

With respect to Grapefruit’s filing, Bradley J. Yourist, Grapefruit’s CEO, stated, “We are very pleased to file this Amendment which, despite our previously announced audit delays keeps us on track to finalize the Auctus financing transaction. Pursuant to the terms of our Agreements with Auctus, immediately upon effectiveness of the Registration Statement, which we believe should occur in mid to late May of 2020 we will receive additional funds from the Investor and 90 days later, prior to Labor Day, a final Convertible Note Tranche of $1,000,000.00. These funds are key to our revenue growth in 2020, which is already off to an increase over last year. In addition, assuming our common stock price increases in the near future in response to our expected positive results, we will be calling our A warrants to bring in additional working capital. We are currently focused on ramping up revenues to justify an increased stock price which will afford us the opportunity to call all the Warrants. We are also in the process of evaluating other capital raising possibilities. As was pointed out in our recent press release concerning our 2019 financial results, we have regained our momentum which was temporarily slowed by the delay in the Grapefruit Boulevard Investments, Inc. audit and look forward to 2020 and the unlimited possibilities the future holds for Grapefruit. Revenues from our distribution operations are growing at a steady clip and progress with our potentially disruptive, patented time-released THC+CBD “Patchless Patch” continues unabated. We still expect to bring our ‘Patchless Patch’ to market in the second quarter of 2020.”