VANCOUVER, British Columbia, July 19, 2018 (GLOBE NEWSWIRE) -- Abattis Bioceuticals Corp. (the "Company" or "Abattis") (CSE:ATT) (OTC:ATTBF) is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with Emerald Health Therapeutics, Inc. (“Emerald”) to dispose of (the “Disposition”) its 35% interest in Northern Vine Canada Inc. (“Northern Vine”) in exchange for $2 million in cash and $4 million in freely tradeable common shares of Emerald.
The Agreement also provides that, upon Northern Vine and/or Emerald earning gross revenues of $10 million from the sale of products or services to customers introduced by Abattis, Emerald will issue Abattis a further $4 million in common shares of Emerald.
In connection with the Agreement, Abattis has entered into a master services agreement with Northern Vine to provide for Abattis’s continued use of Northern Vine’s laboratory as a “preferred customer”, including with respect to Abattis’s development work on a hemp-infused cannabinoid-rich, THC-free craft beer with Faculty Brewing Co. and on nanoemulsified and liposomal platforms for transmucosal delivery of cannabinoid-rich hemp oil with the University of British Columbia.
“It has been a pleasure partnering with Emerald on Northern Vine since November 2017. We look forward to collaborating with them in the future and to continuing our working relationship with the Northern Vine laboratory,” stated Rob Abenante, President and CEO of Abattis.
Closing of the Disposition is subject to, among other things, the receipt of any required consents, including that of the Canadian Securities Exchange and the TSX Venture Exchange.
About Abattis Bioceuticals Corp.
Abattis is a leading diversified cannabis company, with interests in operations engaged in growing, extraction, testing, propagation and retail distribution. Over the past few years, Abattis has made key acquisitions to leverage synergies and vertically integrate its business. Through Abattis’s ownership interest in Northern Vine Labs, Abattis has access to a laboratory facility holding a Health Canada dealer’s license and, through its wholly owned subsidiary Gabriola Green Farms, it has applied for a Health Canada license to produce and sell Cannabis flower and oils. Abattis also operates a retail vaporizers business through its wholly owned subsidiary, Green Tree Therapeutics, which offers 10 unique branded SKUs online and across the country and owns a series of marketing, licensing and technology rights. Abattis has also partnered with a number of organizations, including the University of British Columbia Faculty of Land and Food Systems, with which it is developing delivery platforms with increased stability and bioavailability for cannabinoid rich THC-free hemp extracts.
ON BEHALF OF THE BOARD OF
ABATTIS BIOCEUTICALS CORP.,
Robert Abenante, President & CEO
For more information, please visit the Company's website at: www.abattis.com or www.northernvinelabs.com
For inquiries, please contact the Company at (604) 674-8232 or at firstname.lastname@example.org.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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 Disposition and the expected completion thereof; Abattis’s continuing relationship with Northern Vine pursuant to the master services agreement; and the issuance of a further $4 million in Emerald common shares in the event Northern Vine and Emerald meet certain sales targets. 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 Disposition will not complete as expected or at all; that Abattis’s relationship with Northern Vine will not continue as expected or at all, following the Disposition; and that Northern Vine and Emerald will not meet the sales target of $4 million or that, even if such target is met, that Abattis will not be issued Emerald common shares in respect of such achievement; 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.