Canadian Cannabis Corp Enters Settlement Agreement For Potential Sale of the Assets of The Clinic Network Inc.
April 25 2017 - 11:19AM
Canadian Cannabis Corp ("CCAN" (OTC
PINK:CCAN), or the "Company") is pleased to announce that it has
entered into a Settlement Agreement (the “Agreement”) resulting in
the potential settlement of certain outstanding debts and other
financial obligations of the Company and its affiliates
(collectively, the “Debts”) owed to certain creditors.
As contemplated by the Agreement, in partial
consideration for the satisfaction of the Debts, CCAN will assign
certain assets of its wholly owned subsidiary, The Clinic Network
Inc. (“TCN”). As additional consideration, CCAN will also enter
into restrictive covenant agreements preventing it from competing
with the business represented by the assigned TCN assets. The
Agreement also places other obligations on CCAN in regard to its
reporting obligations with the Securities and Exchange Commission
and performing a successful financing for a Canadian entity as
required by the creditors. The satisfaction of the Debts,
termination of associated agreements, and release of the Company
from the claims of the creditor are conditional on the Company
successfully performing the financing for the Canadian entity.
Under the Agreement, on or prior to the first
anniversary thereof, the creditor has the option to deliver to the
Escrow Agent a total of CAD $1,500,000 as additional consideration,
at which time one of two closings of the Agreement will occur and
the assignment of the TCN assets consummated. After required
payments and associated, estimated costs under the Agreement it is
anticipated that, post closing, CCAN will have available
approximately CAD $350,000. Of this amount, approximately CAD
$270,000 will be held in an escrow account with at least CAD
$150,000 of this amount to be used in connection with CCAN’s
reporting obligations as required by the Agreement.
Cautionary Note Regarding
Forward-Looking StatementsThis press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (The "Act"). When used in
the preceding discussion, words such as “potential,” "pleased,"
"will," "conditional," "anticipated," "option," or "affords us,"
and similar conditional expressions are intended to identify
forward-looking statements within the meaning of the Act and are
subject to the safe harbor created by the Act. Such statements are
neither historical facts nor assurance of future performance.
Instead, they are based only on our current beliefs, expectations
and assumptions regarding the future of our business, future plans
and strategies, projections, anticipated events and trends, the
economy and other future conditions and, therefore, subject to
certain risks and uncertainties and actual results could differ
materially from those expressed in any of the forward-looking
statements. Such risks and uncertainties include, but are not
limited to, market conditions, competitive factors, the ability to
successfully complete additional financing and other risks
described in the Company's SEC reports and filings.
Therefore, you should not rely on any of these forward-looking
statements.
Any forward-looking statement made by us in this
press release is based only on information currently available to
us and speaks only as of the date on which it is made. We undertake
no obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
About Canadian Cannabis
Corp.Canadian Cannabis Corp ("CCAN") (OTC
PINK:CCAN) is pursuing a business plan focused on entering
strategic transactions in the distribution chain of medical
marijuana. The Company believes its business model of engaging in
strategic transactions to solidify the distribution chain by
matching suppliers with a consistent demand source and providing
suppliers with expert production consulting will bring a strategic
advantage to the marketplace.
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