Tetra Bio-Pharma Announces the Completion of GrowPros Transaction
February 22 2018 - 12:11PM
Tetra Bio-Pharma Inc. (“
Tetra” or the
“
Company”) (TSX-V:TBP) (OTCQB:TBPMF), a global
leader in cannabinoid-based drug development and discovery, is
pleased to announce the completion of the sale of its shares of
GrowPros MMP Inc. (“
GrowPros”) to North Bud Farms
Inc. (the “
Purchaser” or “
North
Bud”) as previously announced in Tetra’s December 21st,
2017 press release.
Transaction DetailsAs
previously disclosed, Tetra will receive total proceeds in the
amount of $350,000, including an initial $175,000 that was paid in
December 2017, as well as 15,000,000 common shares of the
Purchaser, representing approximately 41% of the Purchaser’s
currently issued and outstanding share capital. It remains Tetra’s
intention to have such shares be transferred to its shareholders as
a dividend in kind on a pro-rata basis, concurrently with the
proposed initial public offering of the Purchaser and listing of
the shares of the Purchaser on a recognized Canadian stock
exchange. The transaction is structured as a sale with a resolutory
condition whereby, in the event that the initial public offering of
the Purchaser is not completed prior to June 30, 2018 (or such
other date as may be agreed upon by the Corporation and the
Purchaser), the sale of the shares of GrowPros will be deemed to
have never occurred and title to the shares of GrowPros will revert
back to Tetra, and in turn GrowPros would then remain a
wholly-owned subsidiary of Tetra.
As part of the transaction, North Bud has agreed
to advance GrowPros’ late stage ACMPR application (submitted in
November 2014) through the application process with Health Canada.
In addition, the Purchaser intends to begin the phase 1 build out
of a 50,000-square foot GMP grade indoor production facility in
late Q1 2018. The facility is located on 130 acres of agricultural
land in Venosta, Quebec (40 min north of Ottawa). The
Purchaser believes that the property can be developed into a total
of 1.5 million square feet of production space. The parties intend
to enter into an agreement shortly so that Tetra will be granted
access to future licenced cannabis production by GrowPros, securing
another source of pharmaceutical GMP quality cannabis.
The cash proceeds will be used to further
strengthen Tetra’s balance sheet and, most importantly, allow the
Company to focus its activities on drug development and clinical
trials of its pharmaceutical business. Tetra expects this
transaction to generate long-term shareholder value by ensuring
another supply of cannabis with pharmaceutical GMP quality for the
pipeline of products under development.
Management Statement“This is an important
transaction for Tetra and our shareholders. Not only have we
monetized an asset that brings immediate cash into the
business but we also have an equity stake in North Bud that we
intend to distribute to our shareholders. Of course, long term,
securing an additional steady supply of dried cannabis is hugely
beneficial for our pharmaceutical development programs. Finally, I
am very excited that North Bud will be pushing forward the ACMPR
application with Health Canada. This is a great day for all parties
involved!” Says Bernard Fortier, CEO of Tetra.
About North Bud Farms:North Bud is a partially
owned subsidiary of North Bud Capital Holdings Ltd. North Bud
intends to apply for a listing on a recognized Canadian stock
exchange in Q2 2018. North Bud, in addition to its newly-acquired
ownership of GrowPros, will be focused on GMP standardized pharma
grade cannabis production as well as food grade cannabinoid infused
inputs for both the international pharmaceutical market and the
pending consumer goods and consumables segment of the recreational
cannabis market.
About Tetra Bio-Pharma:Tetra
Bio-Pharma (TSX-V:TBP) (OTCQB:TBPMF) is a biopharmaceutical leader
in cannabinoid-based drug discovery and clinical development. Tetra
is focusing on three core business pillars: clinical research,
pharmaceutical promotion and retail commercialization of
cannabinoid-based products.
More information at: www.tetrabiopharma.comSource: Tetra
Bio-Pharma
For further information, please contact
Tetra Bio-Pharma Inc.Dr. Anne-Sophie Courtois,
DVM
Vice President, Marketing &
Communications
anne-sophie.courtois@tetrabiopharma.com1
(438) 899-7575
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the adequacy or accuracy of this release.
Forward-looking statementsSome
statements in this release may contain forward-looking
information. All statements, other than of historical fact,
that address activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future
(including, without limitation, statements regarding potential
acquisitions and financings) are forward-looking statements.
Forward-looking statements are generally identifiable by use of the
words "may", "will", "should", "continue", "expect", "anticipate",
"estimate", "believe", "intend", "plan" or "project" or the
negative of these words or other variations on these words or
comparable terminology. Forward-looking statements are
subject to a number of risks and uncertainties, many of which are
beyond the Company's ability to control or predict, that may cause
the actual results of the Company to differ materially from those
discussed in the forward-looking statements. Factors that
could cause actual results or events to differ materially from
current expectations include, among other things, without
limitation, failure to obtain sufficient financing to execute the
Company’s business plan; competition; regulation and anticipated
and unanticipated costs and delays, the success of the Company’s
research strategies, the applicability of the discoveries made
therein, the successful and timely completion and uncertainties
related to the regulatory process, the timing of clinical trials,
the timing and outcomes of regulatory or intellectual property
decisions and other risks disclosed in the Company's public
disclosure record on file with the relevant securities regulatory
authorities. Although the Company has attempted to identify
important factors that could cause actual results or events to
differ materially from those described in forward-looking
statements, there may be other factors that cause results or events
not to be as anticipated, estimated or intended. Readers
should not place undue reliance on forward-looking
statements. While no definitive documentation has yet been
signed by the parties and there is no certainty that such
documentation will be signed The forward-looking statements
included in this news release are made as of the date of this news
release and the Company does not undertake an obligation to
publicly update such forward-looking statements to reflect new
information, subsequent events or otherwise unless required by
applicable securities legislation.
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