The Canadian Bioceutical Corporation Signs Letter of Intent to Acquire Nevada Medical Cannabis Company
TORONTO, ON / CRWEPRESSRELEASE / August 10, 2015 / (TSX Venture: BCC) The Canadian Bioceutical Corporation (“BCC” or the “Company”) announces today that it has entered into a Letter of Intent to acquire a Las Vegas-based Medical Marijuana Enterprise (“MME”) which has been granted a provisional cultivation license and a provisional production license by the state’s Division of Public and Behavioural Health.
“We believe this acquisition will represent a new milestone in our Company’s plan to become a significant participant in the North American medical marijuana industry,” states Scott Boyes, BCC’s CEO. “Nevada has been particularly progressive in the development of its medical marijuana (“MMJ”) regulations and there is a very optimistic outlook for growth of the industry in the state. Of particular note is the reciprocity offered to out-of-state medical marijuana card holders. With over 40 million people visiting Las Vegas every year, Nevada’s policy of recognizing the status of patients from other justictions significantly enhances the potential size of the MMJ market in the state.”
Approval of the sale of marijuana for recreational use in Nevada is scheduled to be on the ballot in next year’s November voting with a widespread expectation of acceptance.
“While the revenue and profitability prospects for our Nevada operation is more immediate and potentially as large as any we could hope for in Canada,” adds Boyes, “we continue to agressively pursue our MMPR application with Health Canada and are moving ahead with our plans for the MMJ production facility in Owen Sound, Ontario. We are excited by the opportunity to be able to acquire and share market knowledge, production practises, technologies and strategic relationships between our MMJ operations on both sides of the border.”
The LOI is conditional on agreement of closing documentation, BCC securing adequate financing, confirmation of the transferability of the licenses by the State and approval of the Board of Directors of BCC. To facilitate a more rapid ramp-up of production, BCC will enter into management agreements assuming full operational control of each license pending formal approval of the acquisitions by the state.
Additional details in relation to BCC’s plan to enter into the medical marijuana sector may be found in the company’s two (2) News Releases of January 7, 2015 with the most recent updates provided in BCC’s News Release of May 11, 2015 and Jul 8, 2015.
About The Canadian Bioceutical Corporation
BCC, formerly Allegiance Equity Corporation, is an Ontario corporation that, for over two decades has been developing unique standardized mass-market nutraceutical products for the treatment of common ailments where present pharmaceutical treatments and over-the-counter products fail to meet the needs of patients. BCC has targeted markets having clearly identified product deficiencies and dissatisfied consumers afflicted with a variety of medical conditions. BCC obtains regulatory approval and patents for these unique compounds and formulations and may produce and distribute or license its products for royalty revenues.
BCC’s principal brands are CinG-X(TM), Reliéva(TM), and Psorberine(TM) and FertaMaxT(TM). Additionally BCC, through its wholly-owned subsidiary BioCannabis Products Ltd. and, subsequent to receiving its MMPR license from Health Canada and as part of its planned expansion into the U.S. medical marijuana sector, intends to develop and market a series of new cannabis-based branded medicinal products to address this rapidly-evolving market.
Investors should be aware that companies cannot legally conduct a medical marijuana business in Canada without a license from Health Canada and that there is significant time and cost required to obtain such a license. As a publicly-traded company publicizing its intention to enter the medical marijuana industry, BCC urges potential investors in any company in this sector, to become familiar with the required resources and the related risks, costs implications and time required before a company will be able to begin licensed operations. There is no assurance that any company announcing its intent to enter the medical marijuana industry will be successful in obtaining a license or in creating shareholder value.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the Transaction and BCC’s objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause 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: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC’s public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
For further information please contact:
Scott Boyes, President and CEO
The Canadian Bioceutical Corporation
SOURCE: The Canadian Bioceutical Corporation