New Canadian Facility Capable of
Producing Up to 1.3 Million Pounds of Medical Marijuana
Annually
MADISON HEIGHTS, MI, January 29, 2014 - Creative Edge Nutrition,
Inc. (PINKSHEETS: FITX), is proud to announce that it has entered
into a collaboration agreement with GrowLife, Inc.
Grow Life Inc. is a diversified company operating in the legal
cannabis industry which develops, markets and deploys products and
services of legal cannabis, is pleased to announce that Organic
Growth International, LLC ("OGI"), its previously announced joint
venture with CANX USA, LLC, has entered into a series of agreements
with CEN Biotech, Inc., subject to the approval of the GrowLife
Board of Directors. GrowLife currently has a 45% ownership
interest in OGI, with conditions under which it can gain majority
interest.
CEN Biotech, working under the inspection and authority of
Health Canada, has completed the extraordinary governmental
processes in Canada to receive approval to begin constructing their
state of the art medical marijuana facility in the City of
Lakeshore, Ontario, Canada. This is commonly referred to as the
"Ready to Build" stage. The facility has undergone extensive
vetting by authorities to ensure strict compliance and facility
security requirements of Canadian Government and provincial
requirements in Canada. Importantly, the facility has been
graciously embraced by the town of Lakeshore and the Windsor Essex
Economic Development Authorities as a most desirable source of jobs
and economic activity for this highly agricultural region.
This production facility is expected to have the capacity to
produce up to 1.3 million pounds of dried medical marijuana
annually, and the total may include capacity that is set aside for
import and export. While facility construction has commenced,
as of the date of this release CEN Biotech has to next secure the
final and formal permissions (License) to grow, harvest, package,
and sell medical marijuana in Canada or for export.
Through a series of agreements, GrowLife has acquired a 25%
equity position in CEN Biotech which is in addition to the
ownership interest in certain licensing fees from CEN Biotech held
through GrowLife’s joint venture partner, along with a shared right
to revenue sharing of 7.7% of all gross payments received by CEN
Biotech. In addition, GrowLife and its affiliates will serve as CEN
Biotech’s exclusive supplier of legal cannabis growing equipment
for the entire term of the shared ownership, subject to certain
limitations. Furthermore, if and when CEN Biotech achieves
cumulative manufacturing and sales volume of one million pounds of
cannabis, OGI will be entitled to a $100 million payment. In
exchange for the rights listed above, and others, GrowLife will
issue to designated CEN Biotech shareholders a total of 235,294,118
shares of restricted GrowLife common stock, the equivalent of $40
million at $0.17 per share, after CEN Biotech is formally approved
to produce and harvest cannabis by the appropriate Canadian
authorities. The shares will be issued only if CEN Biotech receives
final approval (License) to grow and sell marijuana as currently
planned, which means any issuance will likely be months in the
future and closer to when there are revenue opportunities for CEN
Biotech and therefore GrowLife. If these shares are ultimately
issued, GrowLife will be obligated to register them under
applicable federal and state securities laws. This contingent
issuance is also subject to the GrowLife shareholders increasing
the authorized common stock at the upcoming special meeting of
shareholders.
"The agreement represents an outstanding beginning for
GrowLife's newly expanded business model and entry into lucrative
global market sectors in legal cannabis," stated Sterling Scott,
CEO, GrowLife Inc. "The scale of the planned operations is truly
unprecedented for legal cannabis worldwide as the facility has been
proposed and is under construction for a production capacity of up
to 1.3 million pounds of dried medical marijuana annually. We are
extremely pleased to participate in this tremendous revenue
opportunity for GrowLife and its shareholders which we believe
clearly installs GrowLife as one of the foremost cannabis related
companies on an international level."
"When we were provided with the opportunity to potentially
provide these services in Canada our team realized that we needed
the additional support and expertise of an elite cannabis company
with the assets, technology, and intellectual capital to see our
dream through to reality,"stated Bill Chaaban, President and CEO,
CEN Biotech. "In GrowLife we have found that ideal
partner."
A full 8k detailing the Agreement will be released within the
allowed time period. A GrowLife Investor Presentation can be
viewed online at
http://growlifeinc.com/growlife-presentations-october-2013/
From time to time, GrowLife will provide market updates and news
via its websites GrowLifeInc.com, Cannabis.org or the Company's
Facebook page at
https://www.facebook.com/tellthetruthfederalgovernment
About CEN Biotech
CEN Biotech, Inc. was established in 2013 as a partially owned
subsidiary of Creative Edge Nutrition (OTC Pink: FITX) for the sole
purpose of supplying the Canadian public with pharmaceutical-grade
medical cannabis under the newly established Marihuana for Medical
Purposes Regulations (MMPR) CEN Biotech Inc. has submitted a
comprehensive application to become a licensed producer (LP) of
dried marihuana for medicinal purposes and has received a
ready-to-build approval from Health Canada.
About GrowLife, Inc.
GrowLife, Inc. (http://www.growlifeinc.com/) develops, markets
and deploys products and services addressing the needs of legal
cannabis growing and retail operations, including hydroponic
growing equipment and retail support software. The Company provides
these solutions in our nationwide retail network, as well as online
sites Greners.com, Phototron.com and 58Hydro.com. The Company also
operates the political and social forum, Cannabis.org
Cautionary Language Concerning Forward-Looking
Statements
This release contains "forward-looking statements" that include
information relating to future events and future financial and
operating performance. The words "may," "would," "will,"
"expect," "estimate," "can," "believe," "potential" and similar
expressions and variations thereof are intended to identify
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results, and will
not necessarily be accurate indications of the times at, or by,
which that performance or those results will be achieved.
Forward-looking statements are based on information available
at the time they are made and/or management's good faith belief as
of that time with respect to future events, and are subject to
risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. Important factors that could
cause these differences include, but are not limited to:
fluctuations in demand for GrowLife's or Creative Edge Nutrition's
products, the introduction of new products, the Company's ability
to maintain customer and strategic business relationships, the
impact of competitive products and pricing, growth in targeted
markets, the adequacy of the Company's liquidity and financial
strength to support its growth, and other information that may be
detailed from time-to-time in GrowLife's or Creative Edge
Nutrition’s filings with the United States Securities and Exchange
Commission. Examples of such forward-looking statements in this
release include statements regarding future sales, costs and market
acceptance of products as well as regulatory actions at the State
or Federal level. For a more detailed description of the risk
factors and uncertainties affecting GrowLife, Inc. or Creative Edge
Nutrition Inc. please refer to the Company's Securities and
Exchange Commission filings, which are available at
http://www.sec.gov/. GrowLife, Inc. or Creative Edge
Nutrition Inc. undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact:
Jeff Thomas
(313) 655-1669
Email: Info@cenergynutrition.com
Investor Relations Contact for Grow
Life:
Integrity Media
Kurt Divich
(702) 396-1000
kurt@integrityir.com
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