Irvine, CA -- March 8, 2018 -- InvestorsHub NewsWire -- Corix
Bioscience Inc. (OTCQB: CXBS), an emerging developer of proprietary
cannabis and industrial hemp strains earmarked specifically for use
in important healthcare applications, today announced that it has
executed a definitive agreement to acquire a 60% interest in OG
Group LLC, positioning Corix to play a leading role in the
California cannabis market.
Corix CEO Michael Ogburn commented, “We are pleased to team up
with the highly-regarded industry leaders at OG Group. This
acquisition allows us to put licenses Corix already owns to
significant use. OG Group will be utilizing more than $5 million
worth of specialty processing equipment to service customer orders.
Together we expect to positively impact the entire ecosystem of
this business.”
OG Group is purchasing a principal operations facility in
Adelanto, California. The building has 1,800 square feet
immediately available for processing activities, with substantial
room for enlarging to meet customer needs. The real estate also
includes ~44,000 square feet that could be used for future
cultivation. OG Group is funding all of the purchase and start-up
costs of the Adelanto facility and real estate.
CEO Ogburn noted, “The legalization of medicinal and adult-use
cannabis in California this year, paired with the cannabis licenses
(cultivation, processing and distribution) that Corix holds in
Adelanto, makes this acquisition particularly fortuitous and
timely. In the context of a current highly-fragmented California
market, the acquisition of OG Group could, within a short period of
time, result in Corix being the leading cannabis extractor in the
state.”
The all-stock acquisition of 60% of OG Group calls for
17,500,000 Corix common shares to be issued to the OG Group
shareholders; with 5,000,000 shares issued upon closing the
transaction, and 2,500,000 shares to be issued on each subsequent
purchase anniversary for five years thereafter.
Further details of the acquisition will be contained in an 8-K
filing with the SEC.
About OG Group
OG Group LLC was recently established by several experienced
industry leaders who have revolutionized the cannabis distillery
and refinery space. Their background in modern technology and
molecular science has allowed them to serially invent
ground-breaking products that dominate the market.
One recent innovation that has already generated enormous demand
is a service designed to assist cultivators in adapting to the
regulation changes in California. To protect consumers, the state
has toughened its regulations on residual pesticide levels in
cannabis. OG Group has developed a unique molecular procedure that
removes the residual pesticides, allowing cultivators’ products to
be compliant once again, and also safer for their
customers.
Utilizing science and technology, OG Group has become a leading
innovator in the cannabis industry, achieving levels of quality
that have redefined the standards for cannabis-related
products.
About Corix
Corix Bioscience Inc. develops proprietary cannabis and
industrial hemp strains using tissue cell cultures to propagate
living plants that are free of any pathogen or disease. We grow
these plants to maturity and extract the oils, which are the
“medicine” part of the plants. Our market focus is on healthcare
and we expect to release our initial brand-name products for
distribution in the first half of this year.
Our principal executive offices are in Irvine, California. We
grow industrial hemp on land we leased near Genoa, Nevada. We are
purpose-driven. Our mission is to create superior-quality products
in medical-grade facilities, better for both people and the
environment. For more information, we invite you to visit us on the
Web at www.corixbioscience.com.
Cautionary Note Regarding Forward-Looking
Statements
Certain of the statements in this news release that are not
statements of historical fact, including, but not limited to, those
identified by the use of terms such as "anticipate," "appear,"
"believe," "could," "estimate," "expect," "hope," "indicate,"
"intend," "likely," "may," "might," "plan," "potential," "project,"
"seek," "should," "will," "would," and other variations or negative
expressions of these terms, and including statements related to
expected market trends and the future business and financial
performance of Corix Bioscience Inc., are all "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and involve a number of risks and
uncertainties.
Prospective investors are cautioned not to place undue reliance
on any forward-looking statements. Statements made regarding the
intent, belief or current expectations of Corix are based on
assumptions that Corix management believes are reasonable in light
of information available on the date hereof, but they are not
guarantees of future performance and are subject to a wide range of
known and unknown risks, uncertainties and other factors identified
in periodic filings made by Corix with the Securities and Exchange
Commission.
Actual future results may differ materially from those indicated
by present forward-looking statements. Corix Bioscience Inc.
disclaims any obligation to update or revise this news release to
reflect any change in the company's expectations or any change in
events or circumstances after the date hereof, except as required
by law.
Company Contacts
Media: Michael Ogburn,CEO Corix Bioscience Inc.(603) 551-5808 info@CorixBioscience.com
Investor Relations: Tim Rieu,CEO Chesapeake Group, Inc.(410) 825-2930
info@chesapeakegp.com