/NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
OTTAWA, Dec. 17, 2018 /CNW Telbec/ - LiveWell Canada
Inc. ("LiveWell" or the "Company"), (CSE: LVWL), is
pleased to announce that it has signed a binding term sheet to
supply Tilray Inc. (NASDAQ: TLRY) with hemp-derived CBD isolate in
North America.
Under the terms of the agreement, and subject to the governing
laws of the local jurisdictions (possession, sale and
distribution), LiveWell will supply Tilray a minimum of 150
kilograms per month of wholesale CBD isolate cultivated and
processed from hemp commencing in February
2019, through to July 2019.
The amount then increases to a minimum of 300 kg/month for the
remainder of the contract, until December
2019. Tilray has the option to increase the amount of CBD
supply purchased to 500 kg/month, and there is an additional
12-month renewable option.
The deal follows the ending of hemp prohibition in the United States. On December 12, 2018, the U.S. Agricultural
Improvement Act of 2018, also known as the 2018 Farm Bill, was
passed by U.S. Congress. The 2018 Farm Bill legalizes hemp and
removes it from the Controlled Substances Act (CSA). CBD and other
cannabinoid products extracted from hemp are also removed from the
CSA. The bill must still be signed by President Trump, who has
signalled support.
"We are pleased to have a strong partner such as Tilray in this
emerging market," said David
Rendimonti, President and CEO of LiveWell Canada. "With the
legal barriers lifting, we believe the market for hemp CBD could
exceed all forecasts because of the huge shift to self-directed
care and wellness among consumers."
About LiveWell
LiveWell is an innovative Canadian hemp and cannabis company
focused on advanced research on CBD and other cannabinoids, as well
as developing, marketing and distributing consumer health and
wellness products.
As announced on December 3, 2018,
LiveWell has signed a binding letter of agreement to merge with
Vitality CBD Natural Health Products Inc. (the "Merger"),
one of the largest industrial hemp cultivation and extraction
operations in North America, with
approximately 20,000 acres harvested in 2018. The Merger will bring
together U.S. and Canadian assets to create one of the first fully
integrated CBD companies with production capacity of CBD isolate
anticipated to reach 3,000 kilograms per day by mid-2019; research,
product development and GMP manufacturing facilities; international
sales and distribution networks; and experienced leadership.
About Tilray®
Tilray is a global pioneer in the research, cultivation,
production and distribution of cannabis and cannabinoids currently
serving tens of thousands of patients in twelve countries spanning
five continents.
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 Tilray binding term sheet, the potential global CBD
market, anticipated benefits and completion of the Merger,
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
Merger will occur, or that it will occur on the terms and
conditions contemplated in the binding letter of agreement.
Following the due diligence, the Merger 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 Canadian Securities Exchange nor its Regulation
Services Provider accepts responsibility for the adequacy or
accuracy of this release.
For more information, visit livewellcorp.com
SOURCE LiveWell Canada Inc.