Seedo Signs MOU to Secure $30 Million Commercial Line of Credit to Finance Consumer Leasing of Its Home Grow Units
The MOU is non binding and the parties plan to enter into definitive agreements within 60 days.
TEL AVIV, Israel, Aug. 6, 2019 /PRNewswire/ -- "Seedo" (OTCQB: SEDO) – an agritech company providing the world's first fully automated and controlled indoor growing device for the "at-home agriculture" markets as well as commercial scale systems, today announced it signed a Memorandum of Understanding (MOU) to secure a $30 million line of credit to make its Seedo Home grow device even more accessible to consumers. The MOU is non binding and the parties plan to enter into definitive agreements within 60 days.
Seedo has received highly encouraging feedback and positive reviews from customers who have completed their first grow cycle in the home grow unit. Now, the company intends to use this commercial line of credit, once finalized, to launch a home-grow unit leasing business model. Through home unit leasing, customers will be able to pay a small down payment and monthly leasing fee to have the home-grow unit without owning it, making the unit more affordable and accessible for a wider range of consumers.
The Company has been successfully scaling operations and has made major progress in optimizing logistics protocols, providing after-sale customer service and identifying new market opportunities for home-grow and commercial-scale systems.
"We are excited to launch a new leasing business model for the home-grow unit, which will allow us to bring our vision to a wider range of consumers as the 'at-home agriculture' industry continues to grow," said Zohar Levy, CEO of Seedo. "Seedo is having a momentous year, and with this new planned financing specifically earmarked for financing our leasing program, we believe we will expand our installed base of Seedo Home grow units, thereby increasing revenues through leasing income and sales of disposable supplies, while boosting the amount of data in our agronomy database. Our goal is to make it even easier and more affordable for our customers around the world to enjoy today's most innovative home growing solutions, enabling them to grow their own plants – vegetables, fresh herbs, flowers and hemp – at home."
The company recently announced a partnership with leading retail innovation firm OutForm to develop a strategic retail branding strategy and optimize Seedo's U.S. distribution channels and supply chain. OutForm – which works with global retail leaders across industries, including Best Buy, Bed Bath & Beyond, The Home Depot, and more -– is set to introduce Seedo to retailers and consumers across the country. As part of Seedo's recent momentum, the company appointed Daniel Birnbaum, who served as CEO of SodaStream, to its board of directors. Mr. Birnbaum's expertise in building global brands will assist the Company in directing the distribution of the commercial product to retailers and consumers around the globe.
About Seedo
Seedo is a market leading high-tech company providing the cannabis and agriculture industries with the world's first fully automated and controlled indoor growing machine. Seedo provides growers with the freedom to cut costs while generating high yields of lab-grade, pesticide-free herbs and vegetables. Seedo's AI-powered, turnkey systems enable anyone from average consumers to large-scale producers the ability to grow without prior experience or ample space. Seedo is a publicly traded company backed by a group of international investors including Cannabics Pharmaceuticals and is headquartered in Israel. For more information, visit http://www.seedo.com, the content of which is not part of this press release.
Disclaimer: Certain statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of our company's management and are subject to significant risks and uncertainties. For example, we are using forward looking statements in this release when we discuss the MOU for line of credit, the planned definitive documentation, our intended use of this line of credit, the effect it will have on our revenues, customers and the affordability of our products, or when we discuss that Mr. Birnbaum's expertise in building global brands will assist us in directing the distribution of the commercial product to retailers and consumers around the globe. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including, but not limited to, the challenges inherent in new product development initiatives, the effect of any competitive products, our ability to license and protect our intellectual property, our ability to raise additional capital in the future that is necessary to maintain our business, changes in government policy and/or regulation, potential litigation by or against us, any governmental review of our products or practices, as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our latest Form 10-Q Report filed on May 15, 2019. In addition, the MOU to secure the line of credit to finance our new leasing model is a non-binding instrument, and we cannot be sure that we will enter into a definitive agreement. Accordingly, our plans may not materialize. We undertake no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time. Finally, the investing public is reminded that the only announcements or information about Seedo Corp. which are condoned by the Company must emanate from the Company itself and bear our name as its source.
Contacts:
Seedo Corp.
+972-77-6149333
[email protected]
http://www.seedo.com
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