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Abattis Completes Investment in XLABS Therapeutics to Launch New Cannabis Lab in Ontario
VANCOUVER, British Columbia, July 24, 2018 (GLOBE NEWSWIRE) -- Abattis Bioceuticals Corp. (the “Company” or “Abattis”) (CSE:ATT) (OTC:ATTBF) is pleased to announce that, further to its news release dated June 28, 2018, it has closed its investment in XLABS Therapeutics (ONT) Inc. (“XLABS”).
Together, Abattis and XLABS will be launching a new cannabis laboratory in Belleville, Ontario (the “Laboratory”), to service Ontario’s growing cannabis sector. The Laboratory will be housed in a 320,000 square foot building (the “Belleville Facility”), with plans for an initial build-out of 10,000 square feet and future expansion into the remaining 310,000 square feet through organic growth and further joint ventures. The Belleville Facility has been deemed suitable for use as a medical cannabis research facility under Health Canada’s Narcotic Control Regulations (the “NCR”) by an independent consultant engaged by XLABS. XLABS hopes to receive licensed dealer status under the NCR.
“Our partnership with XLABS marks another significant milestone for Abattis,” stated Rob Abenante, President and CEO of Abattis. “Although we continue to have a working preferred services agreement with Northern Vine’s laboratory in Langley, BC, we are looking to aggressively expand our service offerings with the Belleville Facility, including through key services such as industrial scale extraction,” added Mr. Abenante.
Pursuant to the Agreement, Abattis acquired (the “Acquisition”) a 10% equity stake in XLABS, in exchange for an initial investment of $2.5 million into XLABS. In connection with the Acquisition, Rob Abenante, was appointed to the board of directors of XLABS.
This press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", “intends”, "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include statements regarding: the launching of the Laboratory; completion of the initial build-out of the initial phase of the Laboratory and XLABS’s intention to take over the remaining space available at the Belleville Facility; XLABS’s anticipated receipt of licensed dealer status under the NCR; and that Abattis is looking to aggressively expand its service offerings with the Belleville Facility, including through key services such as industrial scale extraction. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, including: that the Laboratory will not be launched; that XLABS will not receive licensed dealer status under the NCR; that the Belleville Facility will not be built-out or expanded as expected; that the Company will not be able to aggressively expand its service offerings with the Belleville Facility; that the Company will not be able to execute its proposed business plan in the time required or at all due to regulatory, financial or other issues; that the Company’s competitors may develop competing technologies; changes in regulatory requirements; and other factors beyond the Company’s control. Additional risk factors are included in the Company's Management's Discussion and Analysis, available under the Company's profile on www.sedar.com. The forward-looking statements are made as at the date hereof and the Company disclaims any intent or obligation to publicly update any forward-looking statements, where because of new information, future events or results, or otherwise, except as required by applicable securities laws.