Robert Celt
New Member
The Canadian Bioceutical Corporation ("BCC" or the "Company") announces today that it has entered into a Letter of Intent to acquire a group of related companies currently engaged in the supply of management and logistical services to medical marijuana dispensaries, production and cultivation businesses in the United States (the "Business").
The Business owns and leases real estate, acquires and leases cultivation and processing equipment, provides accounting, marketing and other support services and supervises cultivation and production operations for medical marijuana enterprises.
BCC's preliminary review of the previous years' annual audited and interim unaudited financial statements indicate that the Business has revenue run-rates well in excess of US$10 million, which are growing by 20% quarterly, and is producing attractive earnings and cash flows. Accordingly, the closing of this transaction could result in financial results and growth prospects for BCC which compare extremely favourably with the other publicly-traded companies in the medical marijuana sector.
As the Letter of Intent also provides for the extension of these services to several other states, including locations in Nevada, BCC has temporarily postponed its plans for a direct launch of its own operations in Nevada (including, for greater certainty, the proposed license purchase transaction and the proposed financing transaction as respectively set forth in BCC's News Releases of August 10, 2015 and September 1, 2015).
"While the revenue and profitability prospects for our Las Vegas operation were exciting, the acquisition of the Business might create a potential conflict of interest and compromise our ability to expand the Business into the emerging Nevada market," states BCC's CEO, Scott Boyes. "As well, we estimate that the Nevada market will take some time to mature while the proposed acquisition, when completed, would assure our Company immediate and significant revenues and cash flows, but still leaving expansion opportunities into Nevada and other medical and recreational marijuana markets as near-term options."
"We continue to aggressively pursue our MMPR application with Health Canada and when the new Liberal government finalizes its policy for the Canadian cannabis industry, we expect to be able to utilize the cash flows from our US operation to help support our plans for the cannabis production facility in Owen Sound, Ontario. We are excited by the opportunity to be able to expand and share market knowledge, production practises, technologies and strategic relationships between our MMJ operations on both sides of the border."
The purchase price for the Business will be US $22.5 million, in cash on closing, and BCC has engaged a European-based capital advisory group to work with BCC in arranging financing for up to US $30 million to complete the purchase and provide for expansion capital as well as general working capital.
Pursuant to the Letter of Intent, the closing of the transaction is scheduled to occur on or before May 15, 2016 and is conditional on agreement of closing documentation, BCC securing adequate purchase price financing, approval of the Board of Directors of BCC and all necessary regulatory approvals.
Additional details in relation to BCC's plan to enter into the medical marijuana sector may be found in the company's two (2) News Releases of January 7, 2015 with the most recent update provided in BCC's News Release of September 1, 2015.
About The Canadian Bioceutical Corporation
BCC, formerly Allegiance Equity Corporation, is an Ontario corporation that, for over two decades has been developing unique standardized mass-market nutraceutical products for the treatment of common ailments where present pharmaceutical treatments and over-the-counter products fail to meet the needs of patients. BCC has targeted markets having clearly identified product deficiencies and dissatisfied consumers afflicted with a variety of medical conditions. BCC obtains regulatory approval and patents for these unique compounds and formulations and may produce and distribute or license its products for royalty revenues.
BCC's principal brands are CinG-X(TM), Reliéva(TM), and Psorberine(TM) and FertaMax(TM). Additionally BCC, through its wholly-owned subsidiary BioCannabis Products Ltd. and, subsequent to receiving its MMPR license from Health Canada and as part of its planned expansion into the U.S. medical marijuana sector, intends to develop and market a series of new cannabis-based branded medicinal products to address this rapidly-evolving market.
Investors should be aware that companies cannot legally conduct a medical marijuana business in Canada without a license from Health Canada and that there is significant time and cost required to obtain such a license. As well, the cultivation and sale of marijuana, while legal and regulated in several U.S. states, technically remains illegal under U.S. federal law. As a publicly-traded company publicizing its intention to enter the medical marijuana industry, BCC urges potential investors in any company in this sector, to become familiar with the required resources and the related risks, costs implications and time required before a company will be able to begin and conduct licensed operations. There is no assurance that any company announcing its intent to enter the medical marijuana industry will be successful in obtaining a license or in creating shareholder value.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the Transaction and BCC's objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: CDN Bioceutical Corp Signs Letter Of Intent To Acquire Medical Cannabis MGT Group
Author: Press Release
Contact: Stockhouse
Photo Credit: Canadian Bioceutical
Website: Stockhouse
The Business owns and leases real estate, acquires and leases cultivation and processing equipment, provides accounting, marketing and other support services and supervises cultivation and production operations for medical marijuana enterprises.
BCC's preliminary review of the previous years' annual audited and interim unaudited financial statements indicate that the Business has revenue run-rates well in excess of US$10 million, which are growing by 20% quarterly, and is producing attractive earnings and cash flows. Accordingly, the closing of this transaction could result in financial results and growth prospects for BCC which compare extremely favourably with the other publicly-traded companies in the medical marijuana sector.
As the Letter of Intent also provides for the extension of these services to several other states, including locations in Nevada, BCC has temporarily postponed its plans for a direct launch of its own operations in Nevada (including, for greater certainty, the proposed license purchase transaction and the proposed financing transaction as respectively set forth in BCC's News Releases of August 10, 2015 and September 1, 2015).
"While the revenue and profitability prospects for our Las Vegas operation were exciting, the acquisition of the Business might create a potential conflict of interest and compromise our ability to expand the Business into the emerging Nevada market," states BCC's CEO, Scott Boyes. "As well, we estimate that the Nevada market will take some time to mature while the proposed acquisition, when completed, would assure our Company immediate and significant revenues and cash flows, but still leaving expansion opportunities into Nevada and other medical and recreational marijuana markets as near-term options."
"We continue to aggressively pursue our MMPR application with Health Canada and when the new Liberal government finalizes its policy for the Canadian cannabis industry, we expect to be able to utilize the cash flows from our US operation to help support our plans for the cannabis production facility in Owen Sound, Ontario. We are excited by the opportunity to be able to expand and share market knowledge, production practises, technologies and strategic relationships between our MMJ operations on both sides of the border."
The purchase price for the Business will be US $22.5 million, in cash on closing, and BCC has engaged a European-based capital advisory group to work with BCC in arranging financing for up to US $30 million to complete the purchase and provide for expansion capital as well as general working capital.
Pursuant to the Letter of Intent, the closing of the transaction is scheduled to occur on or before May 15, 2016 and is conditional on agreement of closing documentation, BCC securing adequate purchase price financing, approval of the Board of Directors of BCC and all necessary regulatory approvals.
Additional details in relation to BCC's plan to enter into the medical marijuana sector may be found in the company's two (2) News Releases of January 7, 2015 with the most recent update provided in BCC's News Release of September 1, 2015.
About The Canadian Bioceutical Corporation
BCC, formerly Allegiance Equity Corporation, is an Ontario corporation that, for over two decades has been developing unique standardized mass-market nutraceutical products for the treatment of common ailments where present pharmaceutical treatments and over-the-counter products fail to meet the needs of patients. BCC has targeted markets having clearly identified product deficiencies and dissatisfied consumers afflicted with a variety of medical conditions. BCC obtains regulatory approval and patents for these unique compounds and formulations and may produce and distribute or license its products for royalty revenues.
BCC's principal brands are CinG-X(TM), Reliéva(TM), and Psorberine(TM) and FertaMax(TM). Additionally BCC, through its wholly-owned subsidiary BioCannabis Products Ltd. and, subsequent to receiving its MMPR license from Health Canada and as part of its planned expansion into the U.S. medical marijuana sector, intends to develop and market a series of new cannabis-based branded medicinal products to address this rapidly-evolving market.
Investors should be aware that companies cannot legally conduct a medical marijuana business in Canada without a license from Health Canada and that there is significant time and cost required to obtain such a license. As well, the cultivation and sale of marijuana, while legal and regulated in several U.S. states, technically remains illegal under U.S. federal law. As a publicly-traded company publicizing its intention to enter the medical marijuana industry, BCC urges potential investors in any company in this sector, to become familiar with the required resources and the related risks, costs implications and time required before a company will be able to begin and conduct licensed operations. There is no assurance that any company announcing its intent to enter the medical marijuana industry will be successful in obtaining a license or in creating shareholder value.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the Transaction and BCC's objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: CDN Bioceutical Corp Signs Letter Of Intent To Acquire Medical Cannabis MGT Group
Author: Press Release
Contact: Stockhouse
Photo Credit: Canadian Bioceutical
Website: Stockhouse
