VANCOUVER, British Columbia, Aug. 14, 2018 (GLOBE NEWSWIRE) -- Abattis Bioceuticals Corp. (the "Company" or "Abattis") (CSE: ATT / OTC: ATTBF) is pleased to announce that it has completed the sale (the “Sale”) of its 35% interest in Northern Vine Canada Inc. (“Northern Vine”) to Emerald Health Therapeutics, Inc. (TSXV:EMH / OTCQX:EMHTF) (“Emerald”) in exchange for $2 million in cash and $4 million in common shares of Emerald, 50% of which are free trading and 50% of which may be sold in 30 days.
“The sale of Northern Vine is a great achievement for Abattis,” stated Abattis President and CEO, Rob Abenante. “We learned several valuable lessons setting up this pilot lab, which will prove to be of tremendous value as we launch our second industrial scale lab in Ontario with Xlabs.”
The share purchase agreement governing the Disposition (the “Agreement”) also provides that, upon Northern Vine and/or Emerald earning gross revenues of $10 million from the sale of products or provision of services to customers introduced by Abattis, Emerald will issue Abattis an additional $4 million in common shares of Emerald.
In connection with the Disposition, Abattis has entered into a service and access agreement (the “Services Agreement”) with Northern Vine to provide for Abattis’s continued use of Northern Vine’s laboratory as a “preferred customer”, including with respect to Abattis’s development work on a hemp-infused cannabinoid-rich, THC-free craft beer with Faculty Brewing Co. and on nanoemulsified and liposomal platforms for transmucosal delivery of cannabinoid-rich hemp oil with the University of British Columbia.
“This Disposition was very strategic for Abattis,” added Mr. Abenante. “We have monetized our minority interest in Northern Vine and strengthened our financial position while continuing to ramp up our focus on bringing revenue generating products and services to the market. In addition, thanks to the Services Agreement, we are able to continue using the Northern Vine lab for our downstream service offerings on a preferred basis, including for our CBD beer and UBC research and development work.”
Mr. Abenante continued: “It has been a pleasure partnering with Emerald on Northern Vine and we look forward collaborating with them in the future on other projects.”
About Abattis Bioceuticals Corp.
Abattis is a leading diversified cannabis company, with interests in operations engaged in growing, extraction, testing, propagation and retail distribution. Over the past year, Abattis has made key acquisitions to leverage synergies and vertically integrate its business. Through its partnership with Northern Vine Labs and its investment in XLABS Therapeutics (ONT) Inc., Abattis has access to a fully licenced laboratory facility and an industrial size laboratory currently in the process of obtaining a Health Canada dealer’s license and, through its wholly owned subsidiary Gabriola Green Farms, it has applied for a Health Canada license to produce and sell Cannabis flower and oils. Abattis also operates a retail vaporizers business through its wholly owned subsidiary, Green Tree Therapeutics, which offers 10 unique branded SKUs online and across the country and owns a series of marketing, licensing and technology rights. Abattis has also partnered with a number of organizations, including the University of British Columbia Faculty of Land and Food Systems, with which it is developing delivery platforms with increased stability and bioavailability for cannabinoid rich THC-free hemp extracts. For more information, visit the Company’s website at: www.abattis.com
ON BEHALF OF THE BOARD OF
ABATTIS BIOCEUTICALS CORP.,
"Rob Abenante"
Robert Abenante, President & CEO
For more information, please visit the Company's website at: www.abattis.com or www.northernvinelabs.com
For inquiries, please contact the Company at (604) 441-1304 or at investors@abattis.com.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", “intends”, "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include statements regarding: Abattis’s continuing relationship with Northern Vine pursuant to the master services agreement; the setting up of a new lab with XLABS; Emerald common shares in the event Northern Vine and Emerald meet certain sales targets. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, including: that Abattis’s relationship with Northern Vine will not continue as expected or at all; that Abattis will set up a new lab with XLABS; that Northern Vine and Emerald will not meet the sales target of $4 million or that, even if such target is met, that Abattis will not be issued Emerald common shares in respect of such achievement; that the Company will not be able to execute its proposed business plan in the time required or at all due to regulatory, financial or other issues; that the Company’s competitors may develop competing technologies; changes in regulatory requirements; and other factors beyond the Company’s control. Additional risk factors are included in the Company's Management's Discussion and Analysis, available under the Company's profile on www.sedar.com. The forward-looking statements are made as at the date hereof and the Company disclaims any intent or obligation to publicly update any forward-looking statements, where because of new information, future events or results, or otherwise, except as required by applicable securities laws.