EDMONTON, Alberta, May 03, 2018 (GLOBE NEWSWIRE) -- Radient Technologies Inc. (“Radient” or the “Company”) (TSX Venture:RTI) is pleased to announce it has completed its previously announced real estate acquisitions (please see the Company’s April 18, 2018 news release).
The Facility
Radient has completed the acquisition (the “JV Transaction”) of a 100% interest in 1631807 Alberta Ltd., a joint venture company (the “JV”), from the Amnor Group (the “Vendor”). The JV owns the land and building that contains the 20,000 square feet manufacturing facility in Edmonton, Canada (the “Facility”) operated by Radient. Radient has issued 1,246,449 common shares, at a deemed price of $1.40, to the Vendor as consideration for a 100% ownership in the JV. In connection with the closing of the JV Transaction, Radient has discharged the $2,420,147 existing mortgage on the Facility. With the closing of this acquisition completed, Radient intends to complete an expansion of the Facility.
The Facility is located approximately 20 kilometers from the Aurora Sky facility owned by Aurora Cannabis Inc. (“Aurora”) (TSX:ACB) (OTCQB:ACBFF) (Frankfurt:21P) (WKN:A1C4WM). The Facility has a design capacity to process 5 metric tonnes/day of biomass and has been operational since 2016. The Facility is fully GMP compliant, with an ACMPR license application pending with Health Canada. Radient has already been granted the Controlled Drugs and Substances license by Health Canada that makes it a Licensed Dealer (please see Radient’s previous news release dated February 5, 2018).
Adjacent Lands
Radient has also completed the acquisition of two parcels of land (the “Adjacent Lands”) adjacent to the Facility (the “Adjacent Lands Transaction”) from the Vendor. Radient has purchased the Adjacent Lands for the future expansion of the Facility. The acquisition of the Adjacent Lands will add an additional 80,000 sq. ft. plus of real estate that will complement the existing industrial scale MAP™ Facility. As consideration for the Adjacent Lands, Radient has issued 1,553,190 common shares to the Vendor, at a deemed price of $1.34.
In connection with the closing of the Adjacent Lands Transaction, Radient discharged the existing $2,223,835.95 mortgage on the Adjacent Lands. In connection with the JV Transaction and the Adjacent Lands Transaction (collectively, the “Transactions”) Radient secured a $5.5 million mortgage from Moskowitz Capital (the “Mortgage”) and used a portion of the proceeds to discharge the existing mortgages on the Facility and the Adjacent Lands. The Mortgage has a term of 24 months with an interest rate of the greater of 8.50% or the Bank of Nova Scotia Prime Rate plus 5.05% per annum. The Mortgage is secured by the Facility and the Adjacent Lands as well as a charge over all of Radient’s present and after acquired personal property.
Harry Kaura, a director of Radient, is a control person of the Amnor Group and therefore each of the Transactions constitutes a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 based on a determination that the securities of the Company are listed on the TSX Venture Exchange and that neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Transactions, insofar as it involves interested parties, exceeds 25% of the market capitalization of the Company.
All shares issued in connection with the Transactions are subject to a hold period of four months and one day. Radient did not pay any finder’s fees in connection with the Transactions.
About Radient
Radient extracts natural compounds from a range of biological materials using microwave assisted processing (“MAP™”), a patented technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its 20,000 square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health and personal care markets. Since 2016, Radient has expanded its offerings to enter the cannabinoids market utilizing its MAP™ platform to process and extract cannabinoids including cannabidiol and tetrahydrocannabinol from cannabis biomass.
The Company, having received its Dealer’s License from Health Canada’s Office of Controlled Substances for its Research & Development Laboratory located at 8223 Roper Road in February 2018, is in the review phase of its application to the Office of Medical Cannabis for the ACMPR Production License (the “ACMPR License”) for its manufacturing facility located at 4035 101 St NW in Edmonton. Approval of the ACMPR License is dependent upon, among other things, security upgrades included in the Company’s previously announced plant expansion and optimization project, scheduled for completion in the 2nd half of 2018. The Company’s application to the Office of Medical Cannabis for a Dealer’s License for its manufacturing facility is also currently under review.
Visit www.radientinc.com for more information.
SOURCE: Radient Technologies Inc.
Denis Taschuk, Chief Executive Officer, dtaschuk@radientinc.com,
(780) 465-1318;
Mike Cabigon, Chief Operating Officer, mcabigon@radientinc.com,
(780) 465-1318
Forward Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations; the Company’s ability to obtain the ACMPR License and other applicable licenses; the impact that the Transactions will have on the Company’s business; the Company’s ability to repay the Mortgage; the Company’s ability to expand the Facility; the Company’s ability to grow its business in the cannabis sector and the Company’s future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Radient, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although Radient has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Radient does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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