CALGARY, Sept. 17, 2019 /CNW/ - Westleaf Inc. (the
"Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF) is
pleased to announce that pursuant to a Consulting and Extraction
Services Agreement between a subsidiary of Xabis Inc.
("Xabis") and Westleaf Labs LP, a wholly owned subsidiary of
the Company (the "Agreement"), the Company has issued
909,090 common shares ("Common Shares") in the capital of
the Company to Xabis at a deemed price of $0.44 per share (the "Tranche 1
Shares").
Under the terms of the Agreement, which was previously announced
by the Company on June 4, 2019, Xabis
will provide technical expertise to the Company's Calgary-based extraction, processing and
manufacturing facility ("The Plant"), in exchange for
equity-based compensation of up to $1,000,000 worth of Common Shares, payable in
three tranches over a three year period and a cash payment
consisting of six monthly fixed fee service-based cash payments
estimated to amount to approximately $138,000. The quantity of the Common Shares
to be issued under each tranche will be determined by dividing the
equivalent dollar amount to be received under the respective
tranche by the five day volume weighted average trading price of
the Common Shares determined on the trading day immediately
preceding the date on which the Common Shares are to be issued or
such other method as may be permitted by TSX Venture Exchange
policy.
The issuance of the Tranche 1 Shares is the first of three
tranches of Common Shares to be issued to Xabis pursuant to the
Agreement.
About Westleaf Inc.
Westleaf is a Canadian cannabis company focused on cannabis
brands, extraction and production of derivatives, wholly owned
retail, as well as cannabis cultivation. The Company's extraction
and processing facility, The Plant, will produce high
quality and consistent cannabis derivatives and consumables, both
for Westleaf's in-house brands as well as white label products.
Westleaf's retail concept, Prairie Records, leverages the
instinctual tie between recreational cannabis and music with stores
operating or in development across Western Canada. The Company's Thunderchild
cultivation facility is scheduled for completion at the end of this
year.
Neither 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
Cautionary Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of the applicable Canadian
securities legislation. All statements, other than statements of
historical fact, are forward-looking statements and are based on
expectations, estimates and projections as at the date of this news
release. Any statement that involves discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always
using phrases such as "expects", or "does not expect", "is
expected", "anticipates" or "does not anticipate", "plans",
"budget", "scheduled", "forecasts", "estimates", "believes" or
"intends" or variations of such words and phrases or stating that
certain actions, events or results "may" or "could", "would",
"might" or "will" be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
statements. In this news release, forward-looking statements relate
to, among other things, (i) the construction of the Thunderchild
cultivation facility and the timing for completion of same; (ii)
products and brands to be produced from Westleaf's production
facilities and the products and services that Westleaf plans to
offer; (iii) amounts payable to Xabis under the Agreement
(including the issuance of Common Shares to Xabis as consideration
for services provided to Westleaf by Xabis) and the timing thereof.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the 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: risks relating to the ability to obtain or maintain
licences to retail cannabis products; review of Westleaf's
production facilities by Health Canada and receipt of licences from
Health Canada in respect thereof; future legislative and regulatory
developments involving cannabis, including the passing of
regulations regarding derivative cannabis products; inability to
access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms;
the labour market generally and the ability to access, hire and
retain employees; general business, economic, competitive,
political and social uncertainties; the satisfaction of conditions
precedent under Westleaf's credit facilities; timing and completion
of construction of Westleaf's production facilities and retail
locations; and the delay or failure to receive board, ATB Financial
or regulatory approvals, including any approvals of the TSX Venture
Exchange, as applicable. 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
the forward-looking statements and information contained in this
news release. Except as required by law, Westleaf assume no
obligation to update the forward-looking statements of beliefs,
opinions, projections, or other factors, should they change, except
as required by law.
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SOURCE Westleaf Inc.