LEADING BRANDS, INC.: Announces that it has Entered into a Support Agreement with Majesco Entertainment Company (“Majesco...
February 08 2018 - 08:30AM
Leading Brands, Inc. (NASDAQ:LBIX) (the
“Company”), announces that it has entered into a Support Agreement
with Liquid Media Group, Inc’s (“Liquid”) subsidiary, Majesco
Entertainment Company (“Majesco”), whereby the Company will invest
in the exploitation of Majesco’s gaming properties in Asia.
On September 18, 2017 the Company announced that it had entered
into a Definitive Arrangement Agreement (the “DAA”) with Liquid of
Vancouver, Canada whereby LBIX would acquire 100% of Liquid
pursuant to a plan of arrangement. The DAA was amended on
January 15, 2018 and the exchange ratio adjusted so that LBIX
shares would be valued at $1.78 US. It is anticipated that existing
LBIX shareholders will hold 25.8% and Liquid shareholders are
anticipated to hold 74.2% of the post-transaction entity.
In order to assist Liquid with the development of its gaming
business (in advance of the closing of the Preferred Share
financing also announced by Liquid on January 15, 2018) the Company
has agreed to advance Funds to Majesco so that Majesco can in turn
retain Web Presence in China (“WPIC”) to further its intellectual
properties such as “A Boy and His Blob (男孩与泡泡怪)” currently selling
in China. WPIC will ensure Majesco meets Chinese consumer demands;
hosted in China to ensure maximum up-time and fast load times, with
customized video and social media functionality.
As part of its engagement, WPIC will develop a WeChat posting
function so user comments appear on the website and unique QR codes
used for on-location approval for vouchers and coupons. This
advanced integration into WPIC event promotion efforts will be used
to initiate the presence of the Majesco properties in Asia.
WeChat is China’s most popular social media platform and functions
similarly to a combination of Facebook, Paypal and WhatsApp.
In exchange for this investment, the Company has the opportunity
to receive 5% of the net profits from sales of Majesco gaming
assets in Asia for a period of five years.
The full text of the corresponding Liquid News Release may be
found at www.LiquidMediaGroup.co
Ralph McRae
Ralph D. McRaeChairman & CEO
Forward Looking StatementsCertain information contained in this
press release includes forward-looking statements. Words such
as “believe”, “expect,” “will,” or comparable terms, are intended
to identify forward-looking statements concerning the Company’s
expectations, beliefs, intentions, plans, objectives, future events
or performance and other developments. All forward-looking
statements included in this press release are based on information
available to the Company on the date hereof. Such statements
speak only as of the date hereof. Important factors that
could cause actual results to differ materially from the Company’s
estimations and projections are disclosed in the Company’s
securities filings and include, but are not limited to, the
following: general economic conditions, weather conditions,
changing beverage consumption trends, pricing, availability of raw
materials, economic uncertainties (including currency exchange
rates), government regulation, managing and maintaining growth, the
effect of adverse publicity, litigation, competition and other risk
factors described from time to time in securities reports filed by
Leading Brands, Inc. For all such forward-looking statements, we
claim the safe harbor for forward looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995.
©2018 Leading Brands, Inc.
CONTACT:Leading Brands,
Inc.
Email: info@LBIX.com
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