Canadabis Capital (TSXV:CANB)
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1 Year : From Feb 2019 to Feb 2020
CALGARY, Aug. 13, 2019 /CNW/ - CanadaBis Capital Inc. ("CanadaBis" or "the Company") is pleased to announce it has entered into an agreement to acquire 95% of the outstanding shares of Goldstream Cannabis Inc. ("Goldstream") located in British Columbia. Goldstream holds the right to use 13 acres of land, through an existing lease agreement, with the potential to access up to an additional 300 acres and is zoned for the outdoor cultivation of cannabis. Malahat First Nations currently holds a 5% interest in Goldstream and has indicated their intention to maintain this interest after the transaction.
Under the terms of the agreement CanadaBis will acquire ownership of 95% of Goldstream by issuing 11,666,666 common shares of CanadaBis priced at $0.30 per share, subject to regulatory approval. The shares issued are subject to certain share sale restrictions over 24 months. The acquisition of the 95% interest is valued at $3,500,000, which includes the existing lease, $2 million in cash and no outstanding liabilities.
Goldstream's property is strategically located in a hospitable environment and contains a high level of organic matter in the soil, making it ideal for outdoor hemp production. The flowers and leaves of the hemp plant are rich in cannabinoids, notably the non-psychoactive compound Cannabidiol (CBD). CBD, which has gained increasing popularity as of late, has been found to be effective in treating a wide variety of ailments, producing an increase in demand from consumers for products containing CBD.
"The acquisition of Goldstream Cannabis allows CanadaBis to continue to expand our business as a vertically-integrated leader in the emerging cannabis marketplace," said President & CEO, Travis McIntyre. "As a company that is focused on long-term success, this agreement positions us to acquire the hemp product volume we will need to support the growing demands for CBD, hemp and concentrates.
Stigma Grow currently operates 22,000 sq/ft of production space and plans to expand this area to 66,000 sq/ft later this year. The Company received a standard cultivation and processing license from Health Canada on March 8, 2019 and has recently harvested its second crop. Stigma is currently working on developing and promoting a strong Alberta brand focused on catering to high-quality experiences. Proudly offering a craft product with optimal cannabinoid profiles, Stigma is the first Health Canada-licensed producer operating in the Red Deer area.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to our business and operations including development and expansion plans, plans to expand into hemp production; intention to develop property in British Columbia; increasing our product lines to include CBD distillates; and our general business plans. Forward-looking statements are necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: compliance with extensive government regulation, the general business, economic, competitive, political and social uncertainties; successful negotiation of necessary agreements to get our product to market; requirement for further capital, delay or failure to receive board, shareholder or regulatory approvals; the results of operations and such other matters as set out in the Filing Statement available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although we believe that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have a material adverse effect on our future results, performance or achievements.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. CanadaBis Capital does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE CanadaBis Capital Inc.