Relevium Technologies Inc. (TSX.V: “RLV”, OTCQB: “RLLVF” and
Frankfurt: “6BX”) (the “Company” or “Relevium”), announces its
intention to create a new, publicly-traded company through a
spin-out of its pediatric, medical cannabis subsidiary, Biocannabix
Health Corporation (“Biocannabix”).
STRATEGIC CONSIDERATIONS FOR
MANAGEMENTManagement, the board of directors and its
advisors are pleased to announce the Company’s intention to create
additional value for its shareholders through a potential spin-off
of its medical cannabis business, thus creating an independent,
publicly-traded and vertically-integrated biopharma business
focused on paediatric endomedicine with expected dividends for
shareholders.
The Company currently operates in two
segments:
- CPG (Consumer Packaged Goods): Through its US
based business, BGX E-Health LLC, the Company generates revenues
from direct-to-consumer sales of health and wellness products
through a portfolio of trusted brands. This subsidiary seeks to
leverage the high-growth hemp CBD market in the US through each
brand and market segment.
- Paediatric Biopharma: Through its Canadian
based business, Biocannabix, the Company is highly focused on the
development of paediatric endomedical (cannabinoid) formulations
with a strong operational footprint in Canada (sales, import/export
and research), Colombia (cultivation, extraction and clinical
development) and Germany (Licensing and Distribution).
Management, the board and its advisors are
evaluating the possibility of a spinout to unlock value through two
separate vertically integrated businesses, each of which requires a
different skill set and resources. “From a strategic point of view,
operating two separate businesses with two different management
teams creates focus, which translates into better alignment of
stakeholder expectations and execution” stated Aurelio Useche, CEO
of Relevium Technologies.
The final decision to spinout Biocannabix is
subject to the approval of the board of directors, the exchange and
the shareholders of the Company.
SPIN-OUT TO UNLOCK EMBEDDED VALUE IN
BIOCANNABIXManagement, the board and corporate advisors
are carefully considering the creation of a new publicly- traded
corporation through a spinout in order to unlock the value of the
embedded business, which has significantly different drives for
growth and value creation.
The proposed spinout allows Biocannabix to raise
its own capital through the capital markets to fund its development
and future growth, allowing both companies to focus on their core
operations, better allocation of resources and allowing the market
to assign greater valuation to the individual components.
UNIQUE OPPORTUNITY IN MEDICAL CANNABIS THROUGH
INTEGRATED BIOPHARMAThe focus of Biocannabix is on the
development of phyto-derived and synthetic drugs for specific
pediatric conditions. The company has developed a full scientific
ecosystem from genetics, scientific partnerships and clinical
research between Canada and Colombia. Additionally, the company has
cultivation and extraction operations in Colombia, which is
intended to provide positive cash flows in the short term thus
supporting the medium and long-term development of natural and
pharma products.
STRATEGIC POSITIONING IN COLOMBIA AND
LATAM THROUGH LIFELINE PHARMA SASOn June 12, 2019, the
Company announced a binding transaction to acquire Lifeline Pharma
SAS (“Lifeline”), a cultivation and extraction company located in
Cali, Colombia. The 25-hectare project includes an initial
commercial pilot of 5 hectares and full development into 25
hectares with the option to add an additional 60 hectares. The
initial 5 hectares includes local offices, a laboratory, a fully
enclosed greenhouse for tissue culture and micropropagation and an
initial cultivation of over 200,000 square feet in green houses.
The acquisition includes three licences (1) extraction and
manufacturing, (2) cultivation with THC and (3) non-psychoactive
cultivation, all with scientific research, domestic sales and
export modalities. The Company will gain low-cost infrastructure,
which will allow for an estimated full capacity of 170,000 kg per
year with an initial estimated cost of production $0.53 per
gram.
Lifeline is a privately owned
vertically-integrated, agro-pharma business dedicated to scientific
research, growth, extraction, production and export of medicinal
grade cannabis derivatives. Lifeline leverages 150 years of organic
agriculture located in Rozo, Valle del Cauca, in the heart of the
sugar cane enclave, only 7 minutes away from the international
airport and 10 minutes away from Cali, the third largest city in
the country.
The addition of Lifeline to the Company
positions Biocannabix at the center of a developing cannabis market
and at the forefront of a scientific and clinical ecosystem with
access to a rapidly developing legal context in Latin America.
CANADIAN OPERATIONS AND
LICENSING
Sales and Research licensing through the
acquisition of Weedsense Inc.On June 5, 2019, the Company
announced it had signed an LOI to acquire Weedsense Inc.
(“Weedsense”), a late stage applicant for a standard processing,
import/export and medical sales license with Health Canada.
Weedsense is pursuing a wholesale and
distribution business model that fills a gap in the Canadian
cannabis supply chain. Additionally, it will provide Biocannabix
with the ability to market and distribute CannakidsTM unique
pediatric formulations exclusively throughout Canada. Weedsense’s
business model includes the direct distribution of wholesale and
bulk products from licensed producers or processors to medical
patients through a network of pharmacies and clinics. Weedsense
will also service the recreational market by acting as a
distributor to provincially-sanctioned wholesalers such as the
Ontario Cannabis Store (OCS) or Société Québécoise du Cannabis
(SQDC).
Exclusive Sales and Distribution of
Pediatric Cannakids TM On May 30,
2019 the Company acquired the exclusive licence from
California-based, medical cannabis leader Cannakids TM. The
exclusive license includes intellectual property, formulations,
SOPs and patient data for pediatric applications, to be leveraged
for the development of the Canadian market.
Cannakids TM is a pioneer in pediatric,
cannabinoid extracts with thousands of patients over the past 4
years. Using nurse-guided assistance, the brand has been synonymous
with some of the most recognized patient success stories in the
world. Catering to patients of all ages, Cannakids employs medical
experts with dosing expertise that span across hundreds of
ailments. The company has indication-specific formulations backed
by anecdotal and in-house patient data.
About Relevium TechnologiesRelevium is a
publicly traded company that operates in the health and wellness
industry, including legal cannabis, with a primary focus on online
distribution. The principal business of the Company is the
identification, evaluation, acquisition and operation of brands and
businesses in the health and wellness markets and medical cannabis.
The Company pursues its business strategy through an acquisition
and partnership model in a holistic approach to encompass a wide
range of health and wellness consumer products. Relevium operates
through two wholly owned subsidiaries:
BGX E-Health LLC (BGX), based in Orlando,
Florida, markets dietary supplements, nutraceuticals, sports
nutrition and cosmeceuticals primarily through its Bioganix® brand
portfolio in the US and Europe. Relevium’s premium brands are sold
at some of the world’s largest retailers including Walmart.com and
Amazon.com.
Biocannabix Health Corporation (BCX), based in
Montreal, Quebec, is a biopharma nutraceutical company focused on
delivering pediatric endo-medicinal nutraceuticals for cannabinoid
therapy.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
StatementsThis release includes certain
statements and information that may constitute forward-looking
information within the meaning of applicable Canadian and United
States securities laws. All statements in this news release, other
than statements of historical facts, including statements regarding
future estimates, plans, objectives, assumptions or expectations of
future performance, are forward-looking statements and contain
forward-looking information. Generally, forward- looking statements
and information can be identified by the use of forward-looking
terminology such as "intends" or "anticipates", or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "should", or "would" occur.
Forward-looking statements are based on certain material
assumptions and analysis made by the Company and the opinions and
estimates of management as of the date of this press release. These
forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking statements or forward-looking information.
Although management of the Company has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements or forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. 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 and forward-looking information. Readers are cautioned
that reliance on such information may not be appropriate for other
purposes. The Company does not undertake to update any
forward-looking statement, forward-looking information or financial
outlook that are incorporated by reference herein, except in
accordance with applicable securities laws. We seek to rely on the
applicable safe harbor.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES
INC.
Aurelio UsechePresident and CEO
For more information about this press release: Tel:
+1.888.528.8687RELEVIUM TECHNOLOGIES
INCEmail: investors@releviumcorp.comWebsite:
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