Pineapple, Inc. (OTCPK:PNPL) entered into a stock purchase agreement to acquire 50% stake in Capital Growth Investments, Inc. from Pineapple Ventures, Inc. for $1 million on August 7, 2021. Pineapple, Inc. will acquire 0.05 million shares of Capital Growth Investments at an offer per share of $20. Out of $1 million, $0.1 million was paid in multiple tranches which were completed on August 12, 2021 in exchange for 5% of the shares of Capital Growth Investments. Within 60 days of execution of the agreement, the remaining balance of $0.9 million shall be paid in exchange for 45% of the shares of Capital Growth Investments. Contemporaneously with the execution of the agreement, the parties entered into a shareholder agreement for Capital Growth Investments, Inc. (the “Shareholder Agreement”). Pursuant to the shareholder agreement, Pineapple, Inc. was granted certain anti-dilution rights, as well certain monthly distributions of net cash from the operations of Capital Growth Investments, along with other voting and indemnification rights. Pineapple funded an aggregate amount of $0.1 million as of September 30, 2021. Pineapple must fund the remaining $0.9 million before March 31, 2022. Should Pineapple be unable to fund the balance of $0.8 million by June 30, 2022, the transaction will be cancelled, and all deposits would be returned to Pineapple. As of March 2022, the parties mutually agreed to extend the closing date to June 30, 2022. CGI and PVI mutually agreed to extend the closing date of the Agreement to August 5, 2022.

Pineapple, Inc. (OTCPK:PNPL) cancelled the acquisition of 50% stake in Capital Growth Investments, Inc. from Pineapple Ventures, Inc. on August 22, 2022.