Grapefruit/GPFT Announces Prompt SEC Response to Amendment No. 2 to Registration Statement.

Los Angeles & Desert Hot Springs, California, May 07, 2020 (GLOBE NEWSWIRE) -- Grapefruit USA, Inc., a California based cannabis distribution and manufacturing company (OTCPINK “GPFT”) (“Grapefruit” or the “Company”) is announcing today that on Monday May 4, the Company received a total of nine (9) comments from the SEC staff in response to Amendment #2 to the Company’s registration statement on Form S-1 filed on April 22, 2020. The registration Statement was originally filed by the Company on July 25, 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 now 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 ninety (90) days later. If all of the Notes are issued and the Warrants called, Grapefruit will have received a total of $10,000,000.00 of proceeds from these financing transactions.

With respect to the prompt SEC response, Bradley J. Yourist, Grapefruit’s CEO, stated, “We were very pleased to receive the SEC comments seven (7) working days after our filing, especially in the current environment. We now expect to have the registration statement declared effective in the very near future which will result in payment to us of additional significant working capital at effectiveness and again ninety (90) days thereafter fueling rapid revenue growth. We are staying on track with our 2020 operating plan.

We expect to publish our first quarter results the week of May 11, 2020.”

About GRAPEFRUIT

Grapefruit’s corporate headquarters is in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products. Grapefruit’s extraction laboratory and distribution facilities are located in the industry recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 14 miles north of downtown Palm Springs. Grapefruit obtained its California cannabis licenses in January 2018 and commenced distribution of cannabis products thereafter. Grapefruit’s vision remains to become a seed to sale, fully vertically integrated ethical and compliant cannabis product Company. To obtain further information on Grapefruit and its operations, please visit its website at https://grapefruitblvd.com/. To learn more about Grapefruit’s Sugar Stoned branded line of cannabis and CBD infused edibles, please visit us at https://sugarstoned.com/.