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TORONTO, July 17, 2018 (GLOBE NEWSWIRE) -- Canada House Wellness Group Inc. ("Canada House") or the ("Company") (CSE:CHV) is pleased to announce that it has entered into, through its wholly owned subsidiary Abba Medix Corp., an exclusive licensing agreement with Medicine Man Technologies Inc. (OTCQB:MDCL) (“Medicine Man”), one of the United States' leading cannabis branding and consulting companies, for deployment of its intellectual property and product lines (Three a Light ®, Success Nutrients ®, General Intellectual Property) into the Canadian marketplace.
The licensing agreement calls for payment of $4.65M (CAD) in the form of cash and stock for licensing of Medicine Man’s intellectual property, product lines, and assignment of an existing Cultivation MAX agreement to Canada House. Under the terms of the transaction, Canada House will pay cash consideration, of which $575,000 will be paid today, the effective date of the agreement, and $575,000 will be payable no later than November 30, 2018. The remaining payment will be satisfied by Canada House issuing to Medicine Man, within ten (10) business days of today, an aggregate of $3,500,000 worth of common shares in the capital of the Company based on the volume weighted average price of Canada House’s common shares for the five trading days ending on the effective date of the agreement. Furthermore, subject to applicable securities laws and the approval of the Canadian Securities Exchange (“CSE”), the Company and Medicine Man will exchange capital stock having an aggregate value of $1,000,000 in the form of a stock swap (the “Stock Swap”), which Stock Swap must be completed within 90 days of today, failing which, the Stock Swap will become null and void without affecting the other terms and conditions of the transaction. Subject to applicable securities laws and the approval of the CSE, the stock prices for the calculation of the number of Medicine Man and Canada House common shares for the Stock Swap will be the 5-day volume weighted average price, respectively, of the Medicine Man and Canada House common shares ending on the date of the Stock Swap. Medicine Man will also be entitled to revenue-based fees related to this deployment over the duration of the license agreement and will be assisting Canada House’s marketing efforts.
Medicine Man’s current CEO, Mr. Brett Roper and members of the Medicine Man team will be working extensively with the Canada House team to assist with transition and product development, in particular focusing on the deployment of a highly efficient network of newly announced micro-cultivator license types in Canada as well as other goods and service offerings.
Brett Roper, Medicine Man’s co-founder and CEO commented, “We are very excited to be aligning ourselves with the Canada House team as they focus on their growth and value goals in the Canadian Cannabis marketplace. In particular, this agreement provides potential future cost-based advantages to Canada House and craft based micro-cultivators in the evolving supply chain, providing a more viable financial basis. These types of opportunities facilitate the creation of additional jobs and infrastructure investments that will be very nimble and not tied down to any particular geographic area, also allowing for substantially less investment risk as we continue down this evolutionary path.”
“We are delighted to be working with Medicine Man, a leader in Cannabis grow technologies,” says Riley McGee, President of Abba Medix Corp. “By helping us improve our yields and quality, we believe that we will be a leading provider to the medical cannabis market and amongst one of the more sustainable and profitable companies in the industry. Our technology leadership will also be of immense benefit to the emerging micro-grower market.”
Chris Churchill-Smith, CEO of Canada House, added, “We are very excited to begin this important relationship with Medicine Man Technologies as the next step in the execution of our strategic plan under the guise of Canada House’s new and refreshed management team. We have experienced first-hand the benefits of the implementation of Medicine Man’s intellectual property and product lines within our Pickering, Ontario grow facility. We firmly believe that Medicine Man’s industry leading cultivation efficiency and performance have and will continue to provide us with a distinct advantage in achieving low cost production while achieving maximum efficiency and quality in our facility. We are excited to have the exclusive right to promote Medicine Man’s technology and products in Canada. This will provide extraordinary additional growth of our business lines and corresponding revenues. I want to thank both Riley and Brett, as well as the rest of his team at Medicine Man Technologies for their extensive work on bringing this project to fruition. We look forward to working closely together for many years to come."
Medicine Man Technologies, Inc.
Established in March 2014, Medicine Man Technologies secured its first client/licensee in April 2014. To date, Medicine Man Technologies has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. Medicine Man Technologies currently has or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa. They continue to focus on working with clients to 1) utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, 2) deploy their highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, 4) stay engaged with an ever expanding team of licensees and partners, all focused on quality and safety that will "share" the ever-improving experience and knowledge of the network, and 5) continuing the expansion of their Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to our overall business development strategy.
Canada House Wellness Group Inc.
Canada House is the parent company of Marijuana for Trauma Inc., Knalysis Technologies and Abba Medix Corp. The Company's goal is to become a marketplace leader through strategic partnerships, mergers, and acquisitions to create a fully integrated cannabis therapy company. For more information please visit http://www.canadahouse.ca or www.sedar.com.
For further information, please contact:
Canada House Wellness Group Inc.
Chris Churchill-Smith
CEO
514-313-0102
chris.smith@canadahouse.ca
Cautionary Statement Regarding Forward Looking Information. Certain statements within this news release pertaining to the Company may constitute “forward looking statements”, within the meaning of applicable securities laws. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “plans,” or other similar words. Such forward-looking statements involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.