ERFURT, Germany and
EDMONTON, Feb. 7, 2019 /CNW/ - AMP Alternative Medical
Products GmbH ("AMP"), a subsidiary of Chinook Tyee Industry
Limited ("Chinook") (TSXV: XCX), has entered into a non-binding
Memorandum of Understanding Production Supply Agreement ("MOU")
with Pure Life Cannabis Corporation ("PLCC"), a late-stage Health
Canada applicant to become a licensed producer of cannabis ("LP")
based in Edmonton,
Alberta.
PLCC is in the process of building a 27,280 square foot Phase 1
facility, which it anticipates can produce approximately 2,000
kilograms of EU-GMP cannabis flower annually and 8,000 kilograms of
cannabis flower product for the Canadian
marketplace.
The non-binding MOU covers the purchase of up to 1,200 kilograms
of cannabis flower annually in the first year of production,
increasing thereafter when PLCC proceeds with Phase 2 and 3
expansion plans. Pursuant to the non-binding MOU, PLCC is in the
process of conducting an EU-GMP gap analysis with AMP's German
pharmaceutical consultants. Upon completion of the PLCC Phase
1 facility, AMP's German pharmaceutical consultants intend to
conduct an audit of the facility. If EU-GMP standards are met, AMP
and PLCC intend to enter into a Definitive Supply Agreement
outlining pricing and monthly supply volumes, which agreement will
also contain a number of conditions in order to complete the
transactions contemplated herein. AMP intends to arrange for final
EU-GMP certification by German State Officials and apply for the
required import licenses for medical cannabis to Germany.
According to Mr. Alex Blodgett,
CEO of Chinook, "We are delighted to have Pure Life on board as a
medical cannabis supply partner especially as Germany is predicted to pass the one million
patient milestone by 2024 (Prohibition Partners, The European
Cannabis Report, January 2019,
4th Edition)".
About Pure Life Cannabis Corporation
PLCC is a
Northern Alberta based high tech
agriculture organization. Their operations will include
in-house laboratories, state of the art growing facilities and
fully integrated data driven growing systems. Gaining EU-GMP
certification and Health Canada licensing to distribute cannabis is
apart of the PLCC strategy to build its presence nationally and
internationally.
About AMP Alternative Medical Products GmbH
AMP is a
German biopharmaceutical company based in Erfurt,
Germany whose business is to provide medical cannabis
formulations and dose delivery systems for German patients. AMP's
business involves the purchase of EU-GMP medical cannabis from
third party suppliers, and arranging transportation, logistics
and storage services, for ultimate distribution through
pharmaceutical distributors to pharmacists in Germany.
AMP is a subsidiary of Chinook Tyee Industry Limited, an
investment issuer listed on the TSX Venture Exchange (TSXV:
XCX). Chinook has 10,217,796 fully diluted shares issued and
outstanding and net investment assets of over $2.0 million (unaudited) as of September 30, 2018.
Forward-Looking Statements
This news release contains
forward-looking statements that are based on Chinook's
expectations, estimates and projections regarding its business and
the economic environment in which it operates, including with
respect to Chinook's business plans, including its ability to
assist LPs (including PLCC) with obtaining EU-GMP certification and
export medical-grade cannabis to Germany and the timing thereof, Chinook's
expectations and estimates regarding the profitability of the
medical-grade cannabis business in Germany and Chinook's plans to develop and
produce its own medical-grade cannabis strains. Although Chinook
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. Therefore,
actual outcomes and results may differ materially from those
expressed in these forward-looking statements and readers should
not place undue reliance on such statements. Factors that could
cause actual results to differ materially from those in
forward-looking statements include general economic, market or
business conditions, including the general acceptability of
medical-grade cannabis in Germany,
risks associated with regulatory changes and the retail sector
generally, availability of personnel, materials and equipment on a
timely basis, accidents or equipment breakdowns, uninsured risks
and receipt of necessary TSX Venture Exchange approvals. These
forward-looking statements speak only as of the date on which they
are made, and Chinook undertakes no obligation to update them
publicly to reflect new information or the occurrence of future
events or circumstances unless otherwise required to do so by
law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the
adequacy or accuracy of this release.
SOURCE AMP Alternative Medical Products