/NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
Minimum quantity of 1,000 Kgs per month to
ramp up to 3,000 Kgs per month
OTTAWA, Oct. 30, 2018 /CNW Telbec/ - LiveWell Canada
Inc. ("LiveWell" or the "Company"), (TSXV: LVWL)
(OTC: LXLLF), is pleased to announce that it has partnered with
Vitality CBD Natural Health Products Inc, a Canadian CBD company,
(collectively the "Suppliers") to sign a binding term sheet ("Term
Sheet") with Global Wellness Distributors, LLC ("Global
Wellness"), a Nevada entity
controlled by a U.S. private equity firm, for the supply of
cannabidiol (CBD) wholesale products in North America.
Under the Term Sheet dated October 27,
2018, which covers a period of 15 months with an option for
four renewable one-year terms, Global Wellness commits to
distribute CBD isolate, distillate and full spectrum CBD oil. At
closing, Global Wellness will pay a US$3
million deposit to the Suppliers for the initial CBD supply.
Commencing in January 2019, Global
Wellness will distribute a minimum quantity of 1,000 kilograms per
month. Starting April 2019 to
March 2020, the minimum quantity
increases to 3,000 kilograms per month, for a total minimum
quantity of 39,000 kilograms over the 15-month contract period.
LiveWell and Global Wellness will work together to market and
sell CBD products in North
America, leveraging sales expertise and operational support
in both organizations. The parties will co-share net profits on all
sales. Based on current observable wholesale market pricing, CBD
isolate pricing ranges between US$6,500 to US$10,000 based on the quality and purchase
volume of the CBD purchase order.
All CBD products being supplied under the Term Sheet will be
derived from industrial hemp and contain no more than 0.3% THC
content, making it suitable for the health and wellness market. As
legalization and acceptance of CBD -- the non-psychoactive cannabis
compound -- accelerates at a rapid pace globally, the demand for
CBD products to improve health and wellness is exploding. LiveWell
has conducted major research on CBD and is investing in
technologies for the extraction and isolation of CBD and other
cannabinoids for use in prescription and consumer health
products.
"For some time now LiveWell has been quietly positioning itself
to become a significant supplier of wholesale CBD to global
companies looking to launch a multitude of CBD products. We
recognized early on that if these companies were to enter the
marketplace, a large scale, reliable source of CBD would be
required, and we have assembled the assets and partnerships to
provide it," said David Rendimonti,
President and CEO of LiveWell. "This is one of several partnerships
we have developed that allows LiveWell to generate significant
revenues at a nominal cost and no outlay of capital."
The Term Sheet is subject to customary due diligence and
execution of a definitive agreement by November 30, 2018.
About CBD
CBD is the same molecule whether it comes
from cannabis or hemp. However, CBD derived from hemp is more
economical to produce and has a larger global market potential due
to less stringent regulations worldwide for hemp. The Brightfield
Group of Chicago estimates the
North American market for CBD from hemp could reach US$22 billion by 2022. However, the global market
could be significantly larger. Several European countries have
already legalized hemp, and the World Health Organization has also
recommended that CBD be descheduled across 194 nations.
About Global Wellness Distributors, LLC
Headquartered
in Las Vegas, Nevada, Global
Wellness Distributors, LLC ("Global Wellness") is a new large-scale
distributor of compliant hemp products, including CBD Isolate, CBD
Distillate and full spectrum hemp-derived oil. The Global Wellness
team consists of accomplished industry veterans whose substantial
experience in the cannabis and hemp markets throughout the United States and Canada, including California, Colorado, Kentucky, and Oregon, is focused on aggregating large-scale
hemp supply for distribution to identified scale buyers.
The Global Wellness team maintains strategic partnerships with
domestic and international industry leaders to provide the most
competitive and affordable supply solutions available to help
ensure success for companies in the industrial hemp and CBD
marketplace. Global Wellness' management team brings decades of
industry experience to the forefront of the ever-growing global
hemp economy and are differentiated in the marketplace by their
process-driven operating principals and high degree of
professionalism.
About LiveWell Canada
LiveWell Canada Inc. (TSXV:LVWL,
OTC: LXLLF) is an innovative cannabis and hemp company focused on
advanced research on CBD and other cannabinoids, as well as
developing and distributing prescription and consumer health and
wellness products. The company has greenhouses under construction
located in Ontario and Québec and
is supported by business partners such as Canopy Growth (TSX: WEED,
NYSE: CGC) and Canopy Rivers (TSXV: RIV). For more information,
visit livewellcorp.com.
About Vitality
Vitality CBD Natural Health Products
Inc. ("Vitality") is a privately-owned Canadian company.
Through its wholly-owned subsidiary, it is a fully integrated,
hemp processing and CBD isolation and wholesaling company. Vitality
has just harvested over 21,000 acres of industrial hemp, purposely
planted for CBD production. It has operations in Eureka, Montana under the State Farm Act with
licenses to cultivate, process and market CBD in the United States. Vitality is currently
producing CBD isolate in its Eureka facility in its commercial
demonstration plant and is building full-scale manufacturing
facilities that will increase production to over
3,000 kilograms per day of CBD isolate.
Cautionary Note Regarding Forward-Looking
Statements
This release includes forward-looking
statements about the Company and its business. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plan", "continue", "expect", "schedule", "project",
"intend", "believe", "anticipate", "estimate", "may", "will",
"potential", "proposed" and other similar words, or statements
(including negative variations) that certain events or conditions
"may" or "will" occur. Such statements are based on the
current expectations of management. The forward-looking events and
circumstances discussed in this release may not occur by certain
specified dates or at all and could differ materially as a result
of unknown and known risk factors and uncertainties affecting the
Company. Further, the Company cautions that this foregoing list of
material factors is not exhaustive, and readers are encouraged to
read all Risk Factors disclosed in the Company's Management
Discussion & Analysis dated October 26,
2018.
In respect of the forward-looking statements and information
concerning the anticipated benefits and completion of the Term
Sheet, including the anticipated timing for completing the
definitive agreement, the Company has provided such statements and
information in reliance on certain assumptions that it believes are
reasonable at this time. Further, there can be no assurance
that the transaction contemplated under the Term Sheet will occur,
or that it will occur on the terms and conditions contemplated in
this news release. Following the due diligence, the Transaction
could be modified, restructured or terminated.
The forward-looking information contained in this press
release represents expectations of the Company as of the date of
this press release and accordingly, is subject to change after such
date. Readers should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While the Company may elect to, it does not undertake
to update this information at any particular time except as
required in accordance with applicable securities laws.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
For more information, visit livewellcorp.com.
SOURCE LiveWell Canada Inc.