Apollon Formularies Plc Update on Global Hemp Group

 
TIDMAPOL 
 
10 May 2023 
 
           Apollon Formularies Provides Update on Global Hemp Group 
 
Apollon Formularies plc (AQSE: APOL, "Apollon" or the "Company"), a UK-based 
international pharmaceutical company trading on the Aquis Stock Exchange, that 
is licensed to research, develop, process, and sell medical cannabis 
therapeutic products that include legal medical cannabis to treat various 
illnesses under medical supervision, announced that it entered into a binding 
Letter of Intent ("LOI") on January 12, 2023 with Global Hemp Group Inc. 
("GHG") (CSE: GHG / OTC: GBHPF). The Company subsequently announced on 21 March 
2021 that the due diligence period was extended to 28 April 2023. 
 
The parties continue their due diligence, which the Company expects to be 
completed by the end of May. When the due diligence is concluded, Apollon will 
be advised on the final decision from GHG on moving forward with drafting the 
definitive Asset Purchase Agreement. Once a decision is reached, an 
announcement will be forthcoming to the market. 
 
If the parties agree to move forward to the definitive agreement, they will 
negotiate the final terms of the Asset Purchase Agreement, and when signed, GHG 
will acquire the Assets of Apollon, other than cash, cash equivalents, and 
receivables, for a payment of 771,191,266 GHG common shares at a deemed price 
of $0.015 per GHG common share, for a total consideration of C$11,567,869. 
 
Other terms of the Asset Purchase Agreement are outlined in the shareholder 
circular dated 15 March 2023. 
 
To-date the exclusive licence agreement has been completed. Under the terms of 
the agreement, the Company received US$250,000 in cash and 10,000,000 GHG 
Shares. The hold lock-in period of four months and one day will end this month, 
allowing the Company to sell its 10,000,000 GHG Shares at its discretion. In 
return, GHG was granted an Exclusive Licence to certain of Apollon's 
international patent applications and proprietary intellectual property with 
supporting third-party pre-clinical test data in the following territories: The 
United States, Canada, and Mexico, as well as Israel and the European Union 
with extension to Morocco. During the Term of this licence agreement, GHG shall 
pay a quarterly licensing fee to Apollon ("Licensing Fee"), the payment of 
which shall be triggered when revenues are first generated from sublicensing 
activities. Payment of the Licensing Fee shall commence in the subsequent 
quarter. GHG shall provide a quarterly accounting of sublicensing fees it has 
received not later than thirty days after the end of each quarter, and the 
Licensing Fee is due and payable at that time. The Licensing Fee shall equal 
10% of gross sublicensing fees received by GHG. 
 
Terms used in this announcement are without material adjustment, pursuant to 
the Company circular dated 15 March 2023. 
 
The directors of the Company accept responsibility for the contents of this 
announcement. 
 
-ENDS- 
 
For additional information, please visit www.apollon.org.uk or contact: 
 
Apollon Formularies 
Tel:                                                      +44 771 198 0221 
Stene Jacobs                                      stene@apollon.org.uk 
 
Peterhouse Capital Limited (Corporate Adviser) 
Tel:                                                      +44 207 220 9795 
Guy Miller                                           gm@peterhousecapital.com 
 
BlytheRay (Financial PR/IR-London) 
Tel:                                                     +44 207 138 3204 
Tim Blythe/Megan Ray                      apollon@blytheray.com 
 
 
 
END

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May 10, 2023 12:05 ET (16:05 GMT)

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