VANCOUVER, British Columbia, February 27, 2018 /PRNewswire/ --
Abattis Bioceuticals Corp. (the "Company" or "Abattis") (CSE: ATT) (CSE: ATT.CN) (OTC: ATTBF) is pleased to announce that it has entered into a definitive agreement (the "Definitive Agreement") to acquire (the "Acquisition") a 90% ownership interest in Gabriola Green Farms Inc. ("Gabriola").
Gabriola is a privately held British Columbia company that has applied for a license to produce (an "LP") under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR") on Gabriola Island, one of the gulf islands located in the Strait of Georgia off the coast of British Columbia. Gabriola Island has a consistent temperature and humidity level, which makes it well suited to greenhouse growing.
"This is one of the most significant steps our Company has taken towards becoming a full service cannabis company," stated Rob Abenante, Abattis President and CEO. "After successfully obtaining a license through Gabriola, we intend to not only cultivate marijuana, but more importantly sell extracted cannabis products, which will complete our full downstream service offerings."
The Definitive Agreement comes following a series of rapid acquisitions, capital raises, investments and joint-ventures for the Company, which include the acquisition of a cash flowing vaporizer company, investment into a cutting-edge Blockchain technology and cryptocurrency and several collaborations with respected organizations, including the University of British Columbia.
Pursuant to the Definitive Agreement, in exchange for a 90% ownership interest in Gabriola, Abattis will issue an aggregate of 59,760,956 common shares of the Company (each, a "Share"), at a deemed price of $0.3765 per share, and pay an aggregate of $2.5 million in cash to the shareholders of Gabriola, with the exception of CannaNUMUS Blockchain Inc. ("CannaNUMUS"), a company in which Abattis owns a 49% stake, which will retain its 10% ownership stake in Gabriola. In addition, Abattis will make milestone-based payments (the "Milestone Payments") to such shareholders of Gabriola of (i) $5 million upon Gabriola's receipt of a cultivation license under the ACMPR and (ii) $5 million upon Gabriola's receipt of a sales license under the ACMPR. The Milestone Payments will be satisfied through the issuance of shares. Closing of the acquisition is subject to, among other things, completion of due diligence by Abattis and the receipt of any required consents, including that of the Canadian Securities Exchange.
In connection with the Acquisition, Abattis has also secured (i) a right of first refusal on the remaining 10% ownership interest in Gabriola from CannaNUMUS and (ii) an option to acquire the lands on which Gabriola's operations are conducted for $7 million until February 27, 2023 from an unrelated third-party.
"Our acquisition of Gabriola will round out our product offerings and complement our existing offerings in the cannabis products, technologies and services space. With its production facility located on ideal Gabriola Island, Gabriola has the potential to become a significant producer upon receipt of an LP," stated Rob Abenante. "With our powerful cash position and liquidity, as well as our experience across various domains in the cannabis space, we are well positioned to support Gabriola's expansion".
About Abattis Bioceuticals Corp.
Abattis is a life sciences and biotechnology company which aggregates, integrates, and invests in cannabis technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biologics, nutraceutical, bioceutical, and cosmetic markets. The Company is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds. The Company follows strict standard operating protocols, and adheres to the applicable laws of Canada and foreign jurisdictions. For more information, visit the Company's website at: http://www.abattis.com
ON BEHALF OF THE BOARD OF
ABATTIS BIOCEUTICALS CORP.,
Robert Abenante, President & CEO
For inquiries, please contact the Company at +1(604)674-8232 or at email@example.com .
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: the Acquisition, including the consideration payable thereunder; Gabriola's application for an LP; Abattis's intention, upon Gabriola's receipt of an LP, to not only cultivate marijuana, but also sell extracted cannabis products, and that such activities will complete Abattis's full downstream service offerings; the Acquisition rounding out Abattis's product offerings and complementing its existing offerings across the cannabis technologies and services space; that Gabriola has the potential to become a significant producer upon receipt of an LP; and the fact that, with its powerful cash position and liquidity, as well as its experience across various domains in the cannabis space, Abattis is well positioned to support Gabriola's expansion. 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 the Acquisition will not complete under the terms as contemplated or at all; that Gabriola's application for an LP will be unsuccessful; that, upon Gabriola's receipt of an LP, Abattis will not cultivate marijuana or sell extracted cannabis products, or that such activities will not complete Abattis's full downstream service offerings; that the Acquisition will not round out Abattis's product offerings or not complement its existing offerings across the cannabis technologies and services space; that Gabriola will not become a significant producer upon receipt of an LP; that, with its powerful cash position and liquidity, as well as its experience across various domains in the cannabis space, Abattis will not be well positioned to support Gabriola's expansion; 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 http://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.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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SOURCE Abattis Bioceuticals Corp.