Indoor Harvest Corp to Form Cannabis Joint Venture, Provides Guidance for 2019, and to Host Special Meeting of Shareholders
January 17 2019 - 9:12AM
InvestorsHub Cannabis NewsWire
Indoor Harvest Corp to Form Cannabis Joint Venture,
Provides Guidance for 2019, and to Host Special Meeting of
Shareholders
Houston, TX -- January 17, 2019 --InvestorsHub
newsWire -- Indoor
Harvest Corp (OTCQB: INQD), is a precision
agriculture technology company, focused on producing bio-pharma
grade Cannabis for the wholesale and research Cannabis markets, as
well as development of next generation personalized medicines. The
Company is pleased to provide its shareholders guidance for
2019.
Special Meeting of
Shareholders
The Company is hosting a virtual special meeting
of shareholders on January 31, 2019 at 10:00 a.m. (Central Time).
Common stockholders and Series A convertible preferred stockholders
who were record holders on December 7, 2018 will be able to attend
the special meeting, vote, and submit questions during the meeting
via live webcast by visiting www.virtualshareholdermeeting.com/INQD. To
enter the Special Meeting, you must have your 16-digit control
number that was mailed to shareholders of record on December 21,
2018. If you were a shareholder of record on December 7, 2018 and
have not received a proxy statement from the Company, please email
proxyvote@indoorharvest.com.
The purpose of the meeting is to amend and
restate the Company’s certificate of formation in order to increase
the amount of shares of capital stock authorized to be issued, to
grant the Board of Directors (the “Board”) “blank check preferred
stock” authority allowing the Board to fix the terms and issue new
series of preferred stock without the approval of the holders of
the Company’s common stock, to explicitly permit stockholders of
different classes of the Company’s capital stock to vote as a
single class with regard to changes to the certificate of
formation, and to decrease the vote required for the approval of
fundamental actions and fundamental business
transactions.
The Board believes it is in the best interests
of our shareholders to increase the number of authorized shares of
capital stock and to allow the Board to issue preferred stock and
to fix its terms without further approval of the holders of Common
Stock in order to give us greater flexibility in considering and
planning for future potential strategic transactions, including
mergers, acquisitions and business combinations, as well as other
general corporate transactions, as further discussed
below.
“I want to take this opportunity to thank you
for your continued support of Indoor Harvest and to express my
appreciation for your commitment to the Company. The Cannabis
industry experienced some significant events over the last 18
months and we believe that things are just getting started. I and
the rest of the management team are working hard to position the
Company for success as the industry develops, grows, and becomes
more mainstream. It is an important proxy vote and we encourage you
to support it by voting YES.
Without the support of at least 2/3s of the
shareholders, we will not be able to issue additional shares for
the Company to raise vitally needed capital to continue operations
and to move forward with management’s plans. It is important for
you to vote YES.
The proxy will allow the Company to increase our
Authorized Shares of Common Stock from 50m to 200m which in turn
will provide us with currency to complete strategic acquisitions
and form strategic partnerships as well as raise additional
capital”, stated Daniel Weadock, Chief Executive Officer of Indoor
Harvest Corp.
Moving Corporate Headquarters to Boston,
Massachusetts
Management is currently moving the base of
operations and focus to the Boston area to take advantage of what
it believes to be an attractive environment for Cannabis companies
since Massachusetts has now legalized both medicinal and
recreational Cannabis. The state is also offering a Cannabis
research license, which provides a unique opportunity to do
research & development on the medicinal side of the Cannabis
industry.
Management is working to deploy our integrated
aeroponic technology platform, on our own and with partners in the
Boston area, to demonstrate and showcase our belief in the
technology’s ability to significantly reduce operating costs while
increasing yield and quality. Deployment of our integrated
aeroponic technology platform will also allow us to continue
research and development of the technology with the goal of moving
towards commercialization.
We have been working the Boston market for the
last year developing relationships on the ground with what we
believe to be strategically aligned and vertically integrated
potential partners. Two of these relationships include: Cannabis
Community Care and Research Network (C3RN) who are working on the
creation of a global virtual center of excellence for the Cannabis
industry, and Integrated Genetics & Biopharma Research LLC,
which is expected to provide boutique commercial grade genetics and
tissue culture services to cultivators and researchers in
Massachusetts.
Joint Venture between Cannabis Community
Care and Research Network (“C3RN”) and Integrated Genetics &
BioPharma Research (“IGBR”)
The Company has signed a Memorandum of
Understanding (“MOU”) towards a proposed joint venture by and among
C3RN and IGBR. Under the MOU, the Company will work with C3RN and
IGBR to develop a business plan to acquire a license to conduct
research on medical Cannabis. The joint venture group will conduct
research on the use of Controlled Environment cultivation
technology to influence how Cannabis plants express different
chemical profiles to further development of next gen bio
pharmaceutical grade products.
C3RN runs a network of academics, Cannabis
industry participants, healthcare providers, and other stakeholders
interested in advancing collaborative and community-driven science
approaches in Cannabis research in Massachusetts. C3RN also leads,
in collaboration with UMass Dartmouth, a Cannabis consumer and
patient citizen science research study, and partners with local
Cannabis businesses to improve evidence-based patient care in
Massachusetts. In October 2018, C3RN was selected as qualified
training vendor for the Cannabis Control Commission’s (“CCC”)
social equity program, pending further contract negotiations with
the CCC. C3RN intends to leverage these strengths in this joint
venture, with a focus on social equity and advancing rigorous
Cannabis research.
“It is very exciting for C3RN to start on the
process of obtaining a research license to study Cannabis in
Massachusetts as our company spent significant time advocating for
the inclusion of research as an adult-use license category here in
Massachusetts. Through this MOU with Indoor Harvest and IGBR, we
are ready to take the next step towards licensure and to continue
to generate scientific evidence and highlight best practices at the
forefront of the industry,” said Dr. Marion McNabb, CEO of
C3RN.
IGBR is seeking dual licensure (Cultivation and
Research) within Massachusetts under the recreational marijuana
regulations 935 CMR 500.00. IGBR is an industry leader in
intellectual property and best practices in propagation,
cultivation, and Cannabis genetics. IGBR is also currently in
possession of over 100 of the most desired strains and elite
clone-only cuts on the recreational and medical Cannabis market.
Mr. Dan Weadock, Indoor Harvest’s CEO, is also a co-founder of IGBR
and acting as its CEO.
“Our genetic research and development is based
on both data and decades of Cannabis experience. We have
established proprietary criteria and analytics in selecting
cultivars that drive the market and provide cultivators with a
distinct genetic advantage,” stated Douglas Klier, Founder and
Chief Science Officer at IGBR.
The proposed joint venture will work to identify
and publish best practices for cultivation of Cannabis through
rigorous research and development. Additionally, the joint venture
group aims to provide data and develop partner-specific research
studies and objectives with academic and other research
institutions.
“As part of the ongoing change management
efforts and repositioning of Indoor Harvest, we have executed this
MOU to help imagine a collaborative research and development effort
between three strategically interrelated organizations. We believe
this effort will provide the opportunity to create transformative
intellectual property that can be leveraged for the collective gain
of both the joint venture and its constituent entities”, stated Dan
Weadock, CEO of Indoor Harvest and Co-Founder and CEO of
IGBR.
The Company intends to secure consensus among
impacted stakeholders and work towards definitive agreements
between the MOU parties and to secure funding during the second
quarter of 2019, pending the approval of shareholders in passing
the needed increase in the Company’s authorized capitalization at
the special meeting.
Texas Compassionate Use Program Pending
Applicant
The Company’s wholly owned subsidiary, Alamo
CBD, is currently a pending applicant to produce Cannabis in Texas
under the Compassionate Use Program. As of December 17, 2018, only
576 patients were registered with the Compassionate Use Registry
out of an estimated pool of 150,000 eligible patients. The
Company and many advocates believe the state’s approval of just
three producers has led to low participation in the
program.
State Sen. José Menéndez, D-San Antonio, has
filed a measure to expand the list of medical conditions that
qualify for medical Cannabis under the Compassionate Use Act, to
include illnesses such as Crohn’s disease, terminal cancer, autism,
and PTSD. The measure would also remove the 0.5 percent cap on the
amount of THC that medical Cannabis products sold under the
Compassionate Use Act are legally allowed to contain.
Connor Oakley, Executive Director of the Medical
Cannabis Association of Texas (MCAT), believes that enough
pro-medical Cannabis candidates won seats in the Texas Legislature
to finally enact major medical Cannabis legislation. “We feel that
we finally have the votes to get some of our bills passed,” Oakley
said. “We have support from both sides of the aisle this
time.”
Currently there are a total of 13 Cannabis
related bills being filed for the 2019 Texas legislative session.
Additionally, the Texas Republican Party approved medical Cannabis
and industrial hemp reforms in the summer of 2018. Due to the
mounting support for Cannabis in the state, the Company believes
the Compassionate Use Act will be expanded during the 2019
legislative session and that pending applicants such as Alamo CBD
will be allowed to proceed forward. There is no guarantee of
expansion, however, or that any of the filed measures will
pass.
Summary Guidance for
2019
Management believes that working with these
organizations and others like them in Massachusetts positions us
well to move our agenda forward and provides us with an opportunity
to demonstrate our technology and how it can be used to
significantly decrease operating costs while increasing yield,
potency and quality.
While pursuing strategic partnerships and
building our demonstration showcase, management is also working to
clean-up the Company’s balance sheet and to position us for a
potential merger or strategic investment involving other vertically
aligned Cannabis industry companies. Management is actively
pursuing a number of these opportunities. The goal of this effort
is to find a strategic partner that will bring revenue and cash
flow to the Company as well as provide the opportunity to put our
technology in the field.
Management believes that its efforts in
Massachusetts and further developing strategic partnerships will
allow the Company to successfully continue operations and create
real shareholder value. We encourage you to vote YES on the proxy
and give management the tools it needs to grow and expand our
business while enhancing shareholder value.
About Indoor Harvest
Corp
Indoor Harvest Corp
(OTCQB: INQD), is a precision
agriculture technology company focused on delivering pharmaceutical
grade Cannabis for researchers, and the development of next
generation personalized medicines. The Company is a pending
applicant to produce Cannabis under the Texas Compassionate Use
Program and is seeking additional licenses in the State of
Massachusetts.
Forward-Looking
Statements
This release contains certain
“forward-looking statements” relating to the business of Indoor
Harvest and its subsidiary companies, which can be identified by
the use of forward-looking terminology such as “estimates,”
“believes,” “anticipates,” “intends,” expects” and similar
expressions. Such forward-looking statements involve known and
unknown risks and uncertainties that may cause actual results to be
materially different from those described herein as anticipated,
believed, estimated or expected. Certain of these risks and
uncertainties are or will be described in greater detail in our
filings with the Securities and Exchange Commission. These
forward-looking statements are based on Indoor Harvest’s current
expectations and beliefs concerning future developments and their
potential effects on Indoor Harvest. There can be no assurance that
future developments affecting Indoor Harvest will be those
anticipated by Indoor Harvest. These forward-looking statements
involve a number of risks, uncertainties (some of which are beyond
the control of the Company) or other assumptions that may cause
actual results or performance to be materially different from those
expressed or implied by such forward-looking statements. Indoor
Harvest undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
Contact
Information
Indoor Harvest Corp
Dan Weadock, Chief Executive Officer
dweadock@indoorharvest.com
Indoor Harvest (CE) (USOTC:INQD)
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