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
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
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.